First Time Buyers/Keyworkers No Deposit

michael1983l · 7 April 2009 at 7:57AM

Can I just really recommend the Co-op own home scheme. I have just gone through it now and think its great. I had no deposit and an average credit file yet I have still been allowed on the ladder. I have been given a 5 year interest free loan by the government worth 35%, even if we can't pay it back after 5 years it only has 1.75% interest.

The Co-op have been great and answer the phones rapidly in a UK call center. The all round experience has been superb. We would have never gotten on the housing ladder any other way.

Highly Recommended.

neas · 7 April 2009 at 8:08AM

alas poor yorick I knew him well.

You dont care if your house is worth 20% less in 5 years?
You can comfortably repay such a large mortgage but cant save a penny towards a deposit?

These 'key worker' and 'shared ownership' schemes exist to try and prop up a broken pyramid scheme.

michael1983l · 7 April 2009 at 8:13AM

neas wrote: »

alas poor yorick I knew him well.

You dont care if your house is worth 20% less in 5 years?
You can comfortably repay such a large mortgage but cant save a penny towards a deposit?

These 'key worker' and 'shared ownership' schemes exist to try and prop up a broken pyramid scheme.

Wrong, how can I save for a 20k deposit whilst i'm paying private rent worth more than what my mortgage payments are now?

Also if I choose to pay up in 3 to 5 years I can choose to pay back the original ammount. Really I will have made money because 5 years worth of interest on 40k at 5.99% is worth quite a bit.

If my proerty reduces in price so does the governments loan.

I'm a winner all round, only people that don't fully understand the schemes would think otherwise, oh and alot of Financial Advisors that can't make any money on these schemes so they spread nasty incorrect rumors about them.

pinkshoes · 7 April 2009 at 8:28AM

Those who are incapable of saving a deposit shouldn't be buying a house, and are a much higher risk of repossession.

maninthestreet · 7 April 2009 at 8:32AM

michael1983l wrote: »

Wrong, how can I save for a 20k deposit whilst i'm paying private rent worth more than what my mortgage payments are now?

Also if I choose to pay up in 3 to 5 years I can choose to pay back the original ammount. Really I will have made money because 5 years worth of interest on 40k at 5.99% is worth quite a bit.

If my proerty reduces in price so does the governments loan.

I'm a winner all round, only people that don't fully understand the schemes would think otherwise, oh and alot of Financial Advisors that can't make any money on these schemes so they spread nasty incorrect rumors about them.

You seem to have a very cavalier attitude to taxpayers' money.

michael1983l · 7 April 2009 at 8:33AM

pinkshoes wrote: »

Those who are incapable of saving a deposit shouldn't be buying a house, and are a much higher risk of repossession.

I am capable of saving for a deposit whilst paying the same rent as my current mortgage. But why pay someone else's mortgage for them just because YOU think I shouldn't have a mortgage because I don't earn over 40k a year?

michael1983l · 7 April 2009 at 8:34AM

maninthestreet wrote: »

You seem to have a very cavalier attitude to taxpayers' money.

Do I, how do you work that out please explain?

poppysarah · 7 April 2009 at 9:43AM

michael1983l wrote: »

I have been given a 5 year interest free loan by the government worth 35%, even if we can't pay it back after 5 years it only has 1.75% interest.

As a taxpayer I'd like to say thanks for the opportunity to lend you money as such a low rate. NOT.

tasha-debt · 7 April 2009 at 9:43AM

Michael, I think that home buy schemes are a great idea to help first time buyers on to the property ladder as times have changed so much now. I have friends who bought their house 4 years ago with a 5% deposit (there house is still worth more than their mortgage). They said that they would never have been able to raise the 20% required now.

michael1983l · 7 April 2009 at 9:49AM

poppysarah wrote: »

As a taxpayer I'd like to say thanks for the opportunity to lend you money as such a low rate. NOT.

What would you prefer, the housing market to completly collapse due to the lack of first time buyers?

If the housing market was not allowed to inflate at an unsustainable rate in the first plce then this would never have happened. This is down to Labour's encouragment of lending and Landlords greed at buying mutiple properties and raising demands way beyond its means. Forcing prices up and first time buyers out. #In my lifetime I have paid more than enough tax, i'm in my mid 20s and I can tell you have have paid over 50k in advertised tax without ever claiming benifits. I think I am entitled to my share of government help thank you.

I havn't included stealth taxes and VAT into that either. Just income tax and NI

rs82uk · 7 April 2009 at 10:07AM

you are right the government are responsible for allowing prices to go insane, but as someone has said these schemes are designed to keep the prices inflated.
I like you have been forced to stay in rental accomodation paying someone elses mortgage.
It is no wonder that the government has allowed investors to buy up all ftb properties when you read in the paper today that a good number of MP's have "investment" properties.

First Time Buyers/Keyworkers No Deposit

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