The KSIMC of London have committed to helping members purchase their first home. Currently we are working with a Barclays mortgage scheme to deliver this support
Hujjat Housing Scheme FAQs
Please see below for details of the scheme. If you have any other questions, please email mortgage@hujjat.org
You can find the eligibility criteria below
To apply, please send your application form to mortgage@hujjat.org
You will also need to provide documents as explained in the handbook
There will be some additional information required. Please reach out to the HHS team for further information.
You can make a donation to KSIMC of London mentioning HHS or you can sponsor an applicant’s security deposit. KSIMC have funds available to underwrite risk if required. To discuss in full, please see below or email mortgage@hujjat.org
The Barclays minimum mortgage term is 3 years. After this time, you can either continue on Barclays’ ‘follow-on’ rate of 2.49% plus Bank of England base rate or you can find a better rate on the open market. Using a mortgage broker can often get you access to the best rates. The rates you get will depend on your home valuation and current loan to value.
When you come close to the end of your 3 year term, you’ll need to start thinking about what your next steps will be.
At the end of the 3 year minimum term mortgage, Barclays will return to KSIMC the entire security deposit (plus interest). There may be additional terms based on your agreement with HHS at the beginning of your sponsorship. If the homebuyer has failed to make payments on time the deposit may be held for a further term by Barclays. More information is available in the Barclays Family Springboard terms & conditions.
Sponsors are vital for the success of this project and help improve the quality of life of members.
Following the EGM on 19 April 2018, the members voted to allocate £500,000 towards this project. Assuming house prices on average of £300,000 and security deposits of 10%, we can support 16 purchases.
In addition, we are looking to raise donations and sponsorships and expect to be able to provide more people with the ability to purchase their own home.
The HHS has criteria to follow (See HHS criteria) and so does Barclays. If both approve your application, then funds permitting HSS will support your house purchase in this way.
There is a team of 5 people in HHS who will assess your application. There is also an appeals process if you are unhappy with any decision made.
You are obliged as part of the scheme to keep HHS informedif you think you will be unable to keep up your payments. We will then discuss with you the best course of action.
Hujjat Housing Scheme
- Hujjat will deposit 10% of the property value in a Barclays savings account
- Barclays will loan to qualifying individuals
- 100% at 2.69%
- 95% at 2.49%
- Fixed for 3 years*
- After 3 years, Hujjat’s money is returned so long as all payments have been made on time
Candidate Requirements
- The home buyer must have been in employment for 3 years
- They must be a first time buyer with no other property (residential or commercial)
- This is not available for new home purchases
- The homebuyer must be a member of Hujjat
- The homebuyer must be 18 and over
Mortgage Offer
- Barclays offer mortgages of up to £500,000
- They will lend a multiple of salary (for the combined salary of husband and wife) of 4.5x if the total combined salary is up to £50,000. They will lend 5.5x combined salary if the combined salary is above £50,000.
- The mortgage rate will be 2.69% fixed for 3 years if the homebuyer takes a 100% mortgage*.
- The mortgage rate will be 2.49% fixed for 3 years if the homebuyer takes a 95% mortgage*.
- After 3 years the mortgage will revert to a lifetime tracker mortgage at base + 2.49% (currently 2.99%)*.
- More information including the terms & conditions are available at https://www.barclays.co.uk/mortgages/family-springboard-mortgage/
* Mortgage rates may change in the future
Information Requirements
If you are interested in applying Barclays will require the following information:
- 3 months bank statements
- 3 months payslips
- Recent P60 form
- Credit check report (e.g. available from www.experion.com for free)
- Proof of address (e.g. recent utility bill)
- Copy of passport
- Completed Hujjat Housing Scheme Application
Please email the information above to mortgage@hujjat.org
Process
- Send us the required information (see previous slide)
- We shall send the information to Barclays. If they decide you are eligible they will let us know if/how much they are prepare to lend.
- Once you have found a house you may make an offer. If it is accepted you will then meet with Barclays for formal application.
- Barclays will provide a mortgage Offer in Principle letter
- If there are funds available in the Hujjat Housing Scheme, upon signing legal documents with Hujjat funds will be allocated to you.
- Alternatively you will be placed on the waiting list
Rules and Criteria
Hujjat Housing scheme rules
Below is a flow diagram highlighting the broad process with further information below
HHS Check Application
The Hujjat Housing Scheme (HHS) team are a subcommittee (BUJU) of the Executive Committee (EC) of KSIMC of London formed of 5 members. As per the constitution, a member of the EC must chair each subcommittee. We will view your application and check if you are eligible to apply under this scheme.
We will check that all your documentation is in order and may ask further questions on a case by case basis to determine your eligibility and may request further evidence. We may also ask what other avenues you have tried in order to purchase a home. This is so that we are in compliance with Charity Commission rules about the categories of people a charity should be helping.
We will check the following:
- Have you provided all the necessary documentation
- Are you a member of Hujjat
- Do you have 3 years’ continuous employment history
- Do you have funds or means to purchase a property without the help of the scheme
- A declaration from you that you are a first-time buyer
You will also get a chance to ask us any questions you might have about the scheme and we can give further facts about the scheme. We cannot give any financial advice as we are not FCA regulated.
If you would like any advice, please seek it from an independent financial adviser.
Your application will be discussed within the team on a named basis and on a no-name basis outside the team with the EC.
If a member of the team knows the applicant personally, they will need to register a conflict of interest and will not be involved in the decision-making process. All approvals must be based on a unanimous agreement of the voting members of the subcommittee.
Once we have accepted your application and the bank has approved your application funds will be allocated to you to be released to Barclays upon exchange of your property. Currently, Barclays are the only provider of this type of mortgage. In the future, there may be other providers. If they are deemed suitable, the scheme rules will be amended to incorporate additional potential lenders.
Barclays
Barclays will review your application and may request further information. If they want to proceed, they will invite you to meet their mortgage adviser and you can discuss any aspect of the mortgage with them.
If Barclays are happy to proceed with giving you a mortgage, they will let you know and they will also let the HHS team know.
If Barclays reject your application, there is nothing the HHS team can do.
Finding a Home
Once you have been approved by Barclays and the HHS team advise you that there are funds to support your mortgage, you should go about finding a home.
See here for an article on how to buy a home: https://hoa.org.uk/advice/guides-for-homeowners/i-am-buying/the-hoa-step-by-step-guide-to-buying-a-home/
Once the offer on the house has been placed and accepted, please let the team know and we will make arrangements to provide the 10% security to a Barclays account.
In order for the HHS to release funds to Barclays, it is necessary that the applicant(s) agree to the scheme’s conditions and has had relevant legal and financial advice. They will be required to agree to and sign documents which commit them to share information with the HHS team and keep the team aware as soon as practicably possible of any changes in their circumstances. Should their circumstances change, or should it transpire that they have not been truthful, they may be asked to repay any funds committed on their behalf.
Appeal
If the decision is deemed complex or if the subcommittee cannot come to a unanimous decision they will refer the decision to the EC. In addition, if the HHS team decide to reject your application, you can contact the EC directly to ask them to reconsider. To do this, please email ec@hujjat.org with details of your application and why you do not agree with the reason for the rejection . The EC will then ask the HHS team to provide the full details of the case and the EC will decide to uphold the decision of HSS or to overturn it.
The decision of the EC is final. If the EC decide to uphold the decision of HHS, you cannot re-apply to benefit from the scheme for a period of 12 months and you should only apply if your circumstances have materially changed from when your application was rejected.
Grievance
If you have a grievance with the handling of your application, please raise your concerns with the HHS team in the first instance and we will try and reply to your comments.
If you find this unsatisfactory, please escalate your complaint to the EC on ec@hujjat.org explaining the nature of your grievance and your communication with the HHS team to date.
The Scheme rules and criteria are subject to periodic revision. The most up to date version of each will be published and made available on the website.
Hujjat Housing Scheme Criteria
Barclays Family Springboard Mortgage criteria
- The property price should be £500,000 or less and must not be anew build
- Applicant(s) must be over 18
- Applicant(s) must provide their credit scores
- Applicant(s) must have been in employment for 3 years. In the case of a joint application, at least one applicant must have 3 years of employment history. Self-employment history can also be provided as evidence.
Hujjat Housing Scheme criteria - Applicant(s) must be fully paid up members of Hujjat
- Applicant(s) must be first time buyers with no other property (residential or commercial)
- Applicant(s) must be purchasing a home for their own occupation
- Applicant(s) must be unable to purchase a home without the help of the scheme
- Applicant(s) must declare any other loans taken from Hujjat. This may affect the value of the security deposit and therefore the maximum value of the mortgage
- Trustees of Hujjat and their connected persons are not eligible for the scheme. As defined by the constitution connected persons are any spouse, civil partner, cohabitee, parent, child, brother, sister, grandparent or grandchild of a member of the Executive Committee.
Charitable objects criteria
In order to satisfy our charitable objectives, we must ensure all candidates are suitable for this scheme. Candidates may wish to purchase a home for a variety of reasons such as:
- Lack of suitable space in their existing housing
- Lack of quality housing for the candidate’s needs
- Security of tenure
- Access to work
- Reduce housing costs with age
We must be satisfied that the scheme is operating so as to relieve hardship and poverty. Accordingly, we must judge candidates by these criteria on a case by case basis and keep records of our decision-making process against these criteria
Hujjat Housing Scheme hardship criteria
If you meet one or more of the following criteria and funds required from the scheme fall below £100,000, your application will be prioritised:
- You are homeless or threatened with homelessness
- Your current housing is overcrowded
- You need to move for medical or welfare reasons
- You or your family need to be near specialist educational or medical facilities
Additional notes
If you are renting, your mortgage payments may be higher than your rental payments
You will need to pay for all legal and admin fees as required for the purpose of the mortgage. Eg solicitors fees, surveys etc
As a first time buyer, you will need to pay stamp duty. The first £300000 is tax-free. Above that, stamp duty is charged at 5%. Eg on a £350000 property purchase, stamp duty liability is £2500.
You must take professional legal advice and advice from a mortgage advisor.
Documents required:
- 3 months payslips
- Last P60
- Last 3 months bank statements
- Proof of address
- Passport copy
- Statement of assets and liabilities
- Written confirmation from admin office of your Hujjat membership number which also states that membership is fully paid
- Signed paperwork of all relevant documentation.