Options for Key Workers - frequently asked questions

How do I know if I am a key worker?

If you fall into one of the following groups, you may qualify for help as a key worker:

• Local government – Qualified teachers, Qualified social workers, Planners, Speech & language therapists, Occupational therapists, Education psychologists, Nursery nurses, Clinical staff, Rehabilitation officers for visually impaired
• Health care – NHS staff
• Emergency services – Metropolitan police and London fire brigade
• Others – British transport police, Prison service, Probation service

Could I buy any type of property?

You have to buy a property suitable for your household’s needs and within a reasonable travelling distance of your work place.

If I already own a home am I still eligible for the scheme?

Yes. If you already own a home and you meet the eligibility criteria, you could receive help to buy a large home to meet your family needs. You would need to sell your current home to help finance this move.

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What happens if I need to move to a larger home when I start a family?

If you still meet the eligibility criteria for help as a key worker, you can sell the first home you bought and carry forward the help you received. You can use the proceeds of the sale, plus the help you originally received and any further help you are entitled to (up to an overall maximum of £50,000, or higher in the case of some London School teachers), to buy a bigger home.

What is an equity loan?

This is a loan up to a limit of £50,000 (some London school teachers will be eligible for a higher limit). You do not make monthly repayments as you do not repay the loan until you sell the property or stop being a key worker. At that time you would need to repay a percentage of the property’s value at the time. The percentage would be the same as the percentage of the purchase price your equity loan covered. So if you go a £40,000 equity loan to buy a home for £160,000, the loan would represent 25% of the purchase price, and you would have to repay 25% of the value of your home when you sell it or stop being a key worker.

How much will I receive?

This will depend upon your household’s income, savings, any property you already own, any financial commitments such as students loans, the mortgage you can get, and the purchase price of the property you are buying. The maximum loan is £50,000, except in the case of higher-value equity loans for some school teachers in London.

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Both my partner and I are Key Workers – can we get two key worker loans to buy one property?

No, you cannot combine two separate applications for financial assistance. The joint income will be taken into consideration to assess one loan.

I am a teacher in a primary school that does not receive public funds.  Am I eligible?

No – one of the conditions of the scheme is that you work in a school that is in receipt of public funds.

Can I use the cash from giving up my council home to buy with a Key worker loan sum?

No – assistance for key workers cannot be combined with any other publicly funded home ownership scheme.

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What happens if I stop being a key worker?

If you leave eligible employment then you will have to repay the assistance you received. From January 2006 purchasers New Build Homebuy (formerly shared ownership) will generally have five years, instead of two, in which to sell their share in the property they purchased or staircase to full ownership if they leave qualifying key worker employment.

If I have a career break, will I have to pay the money back?

You can have an agreed career break for up to 3 years. If you choose not to go back after this period you will cease to be a key worker on the last day of the 3 year period. You still have 2 years after this 3 year period, before the repayment terms are enforced.

What happens if I leave a key worker job, serve notice to the Homebuy Agent, but within 2 years find another job as an eligible key worker?  Do I still have to repay the loan?

No – if the original key worker returns to eligible employment within 2 years, the clawback provision no longer applies. A letter confirming your permanent employment status from your new employer must be provided.

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What is meant by the claw back?

The claw back period is the amount of time you have between leaving an eligible key worker profession and repaying the equity loan.

What level of rents will be charged for ‘intermediate rent’ homes?

You are likely to pay around 75% to 80% of the local market rent for the type of property you live in. You would have an assured shorthold tenancy while you remain a key worker.

I am a key worker on a temporary contract – am I eligible for assistance?

Yes, you will be eligible as a Key Worker for help, check with your Homebuy Agent for details.

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I am a key worker without indefinite leave to remain within the UK – what assistance am I eligible for?

You can apply for intermediate rent homes which offer good quality accommodation at 80% or less of the market rent. You will not receive assistance to purchase a home.

For more information, please contact:

Application and Enquiries team
Metropolitan Home Ownership
The Grange
Southgate
London
N14 6PW

Tel 020 8920 7777

Email housingoptions@mht.co.uk

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