Financial Information

The loan provided by CCHA is available only to a restricted group of people who cannot meet the cost of outright purchase on the open market but who can afford a mortgage equivalent to an agreed percentage of the value of the property. You may write to or telephone CCHA for a written quotation about the loan.

This loan must be secured by mortgage over the home you buy. YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP THE REPAYMENTS ON A MORTGAGE OR OTHER LOANS SECURED ON IT.

You may repay the loan at any time but it must be repaid if you sell your home. You only have to make one repayment which is the agreed percentage of the market value of your home at the date of repayment. The repayment percentage would be taken into account within the purchase price in the event the sale is back to CCHA under the pre emption sale route.


The amount you repay will depend on the state of the house market where you live at the date of repayment. This means you may pay more or less than the amount you were originally lent by CCHA. If you have to repay more than you borrowed from CCHA, the effect will be similar to a loan under which you pay credit charges at the rate at which your home has increased in value. For example, if your home increases in value by 4 percent or 8 percent a year, the sum you will repay will be equivalent to borrowing under a loan with an APR of 4.0 or an APR of 8.0.

For Example

Assume you buy a home in Cardiff for £50,000 and CCHA provides you with £15,000 (30% of the purchase price). In five years time you want to sell your home and house values have risen. Assume house prices have increased by about 4% a year, so that your home would be worth £60,833. In this example you would repay 30% of the value when you sell the home, which is £18,250. As you are repaying more than you borrowed from CCHA, the amount you repay would be equivalent to borrowing the money at an APR of approximately 4%.

Or, assume you buy a home in Cardiff for £70,000 and CCHA provides you with £17,500 (25% of the purchase price). In three years time you want to sell your home and house values have risen. Assume house prices have increased by about 8% a year, so that your home would be worth £81,769. In this example you would repay 25% of the value when you sell the home, which is £20,442. As you are repaying more than you borrowed from CCHA, the amount you repay would be equivalent to borrowing the money at an APR of approximately 8%.

Or, assume you buy a home in Cardiff for £100,000 and CCHA provides you with £28,000 (28% of the purchase price). In seven years time you want to sell your home and house values have risen. Assume house prices increased by about 4% a year, so that your home would be worth £131,593. In this example you would repay 28% of the value when you sell the home, which is £36,846. As you are repaying more than you borrowed from CCHA, the amount you repay would be equivalent to borrowing the money at an APR of approximately 4%.
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