For example, if you had £30,000 to put down on a property, you could buy a home with HOP for £300,000, with HOP contributing the balance of £270,000.
In Year 1, your annual HOP Payment would be 5% of this balance: £13,500, or £1,125 monthly.
Each year, the HOP Payment would increase by 0.5% above the Retail Price Index. So, If the RPI is 2.5% in Year 2, the HOP increase would be 3%, and your monthly HOP Payment for the second year would increase by £33 to £1,158 per month.
What is the value of your property?
Your contribution: £30,000
HOP Contribution: £270,000
Year 1 HOP Payment: £13,500 or £1,125 monthly
Year 2 HOP Payment: £13,905 or £1,159 monthly *
*If the RPI is 2.5%