Barratts dream start help desperately needed - we may be forced to sell our home
Options
Comments
-
elizabethdane wrote: »move to an interest only in order to save and move to a larger property,
Better to pay off what you already owe. Extending the mortgage term when you remortgage to buy out the share. Would be a better solution.0 -
Has anyone managed to find a way round this? I'm in the same position and now with a little one. If the house had gone in to positive equity this conversation may not be happening. Surely the banks that agreed to lend on this scheme to be made to help? Nothing but a nightmare now!!! I personally wouldn't have done this but I've inherited this from my husband now as he did this 8 years ago to get on the property ladder.
Another issue we have is that our bank will only lend up to 90% of the value of the property, which they will undervalue for their benefit, barratts will say we owe 25% of their valuation which they will over value for their own benefit!
It's a loose loose situation for us and its looking like we will have to sell and walk away with nothing, not even enough to buy a small terrace.
These schemes should be made to help, as there is going to be a lot of people in the same position?
What's the worse they can do? Force a sale? How will they demand their money? The bank will get theirs first out of the sale? Feeling frustrated and upset.0 -
-
So let me get this straight. People "bought" a house/flat by borrowing for the deposit and paying the rest of the balance with an interest only mortgage? It's people like this that helped to push prices up for everyone else.
In 2008 when we bought our house we put down a £30k deposit on a £150k house and have been overpaying so that we have knocked £40k off the mortgage in 5 years so £70k off the house altogether. We don't earn as much as £46k between us and we got married and had a baby in that time. Your original idea was ludicrous to start with, but you don't seem to have helped yourselves along the way. Save money, cut back, pay down your debts or sell up and rent. There are plenty of landlords around now thanks to the recession and the trouble they've had selling their houses. I'm sure they'd be happy to have you.0 -
Barratts have sold half the loan book and gone into a JV on this as they had so much cash tied up in in house shared equity. I would advise ringing them up and offering a smaller amount and saying you would be able to settle for that - theres no harm in trying! I did that when they wrote to me offering a discount and they knocked a further 2.5k off.
However for us, circumstances had changed and we knew we no longer wanted to stay in our home, so we part ex'd and sold it back to Barratts - now on a conventional (newbuy) mortgage - just a thought....0 -
Hi Hannaball,
Interesting - can I ask (as someone in a similar position) how you got Barratt Homes to agree to buy the house back from you? Presumably they took a hit on the price?
The company that Barratt Homes went into a JV with is David Wilson Homes. When I rang them to discuss my options they were really unhelpful and told me to call back nearer the time when the second charge is due to be paid back. Unfortunately I'm not in a position where I can make them an offer as, calculating the current market price of my flat, I would owe them £27,500!
JoolsBarratts have sold half the loan book and gone into a JV on this as they had so much cash tied up in in house shared equity. I would advise ringing them up and offering a smaller amount and saying you would be able to settle for that - theres no harm in trying! I did that when they wrote to me offering a discount and they knocked a further 2.5k off.
However for us, circumstances had changed and we knew we no longer wanted to stay in our home, so we part ex'd and sold it back to Barratts - now on a conventional (newbuy) mortgage - just a thought....0 -
Dale24 - I'm in the same position. Trying to seek legal advice but Citizens Advice have been hopeless and solicitors are asking £400+ just to look at my paperwork.
There must be many people in a similar position. All I want, 8 years after purchasing the flat, is to get back what I paid for the flat in the first place.
Have you had any luck with finding a solution to this?
cheers
JoolsHas anyone managed to find a way round this? I'm in the same position and now with a little one. If the house had gone in to positive equity this conversation may not be happening. Surely the banks that agreed to lend on this scheme to be made to help? Nothing but a nightmare now!!! I personally wouldn't have done this but I've inherited this from my husband now as he did this 8 years ago to get on the property ladder.
Another issue we have is that our bank will only lend up to 90% of the value of the property, which they will undervalue for their benefit, barratts will say we owe 25% of their valuation which they will over value for their own benefit!
It's a loose loose situation for us and its looking like we will have to sell and walk away with nothing, not even enough to buy a small terrace.
These schemes should be made to help, as there is going to be a lot of people in the same position?
What's the worse they can do? Force a sale? How will they demand their money? The bank will get theirs first out of the sale? Feeling frustrated and upset.0 -
Is it me or do all these new help to buy schemes seem like they are gonna end up like this?0
-
Less likely to throw up situations like this as you have to take out a repayment mortgage under HTB and the term of the equity loan is 25 years if you continue to live in the property. Maybe when the loan becomes due in 25 years people might be forced to sell to pay it, but they should end up with 80% of the sale price in their own pocket.Is it me or do all these new help to buy schemes seem like they are gonna end up like this?
Biggest risk with HTB I think is affordability for some when interest payments start up after 5 years as I get the feeling many see it as 'free money'. Also people that have to sell after just a few years of living in a HTB property might find themselves with negative equity/shortfall, but with rapidly rising prices this scenario is getting less likely...0 -
Hi JoolsHi Hannaball,
Interesting - can I ask (as someone in a similar position) how you got Barratt Homes to agree to buy the house back from you? Presumably they took a hit on the price?
The company that Barratt Homes went into a JV with is David Wilson Homes. When I rang them to discuss my options they were really unhelpful and told me to call back nearer the time when the second charge is due to be paid back. Unfortunately I'm not in a position where I can make them an offer as, calculating the current market price of my flat, I would owe them £27,500!
Jools
Barratt bought DW - they have sold the loan book to Norton Rose. I basically told them what I needed to be able to part-ex and pay back their 15%. Yes I know I have a new barratt house, but this is one which is not likely to depreciate quite the same (detached vs mid-terrace town house previously). If you are willing to move and can get a 95% mortgage on newbuy (credit has to be squeaky clean) it is worth it. Other things are I had previously got a letter from them offering a discount, rang them up and offered a cheeky discounted offer, couple of weeks later got a reduced settlement figure in the post. It's worth calling them and giving it a go!0
This discussion has been closed.
Categories
- All Categories
- 343.2K Banking & Borrowing
- 250.1K Reduce Debt & Boost Income
- 449.7K Spending & Discounts
- 235.3K Work, Benefits & Business
- 608.1K Mortgages, Homes & Bills
- 173.1K Life & Family
- 247.9K Travel & Transport
- 1.5M Hobbies & Leisure
- 15.9K Discuss & Feedback
- 15.1K Coronavirus Support Boards