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    • Chz_uk
    • By Chz_uk 29th Sep 16, 9:54 AM
    • 4Posts
    • 1Thanks
    Chz_uk
    Barratts Head Start Scheme - Advice please
    • #1
    • 29th Sep 16, 9:54 AM
    Barratts Head Start Scheme - Advice please 29th Sep 16 at 9:54 AM
    Hi, I'm looking for some advice on a plan I have to get out of the Barratts Head Start scheme please - any comments would be gratefully received.

    I bought a Barratt home in 2009 with their Head Start scheme where they had a 15% equity in the property. The sale price was £116,995, Barratts stake was £17,549.25, my deposit was £5849.75 (5%). Barratts subsequently sold the second charge and it now resides with a company called Rose Shared Equity.

    My property is now worth less than the purchase price, I recently had it valued at £90 - £95k and one of the same type sold on the street last week for £92,500. I have had a repayment mortgage from the start and have about £86k remaining on it.

    I need to repay the 15% by 2019 or if I sell earlier it will be 15% of the current value. I plan to move during the next year and possibly sell the property. I took Voluntary redundancy last year so had a pay-out, £20k of which was going to be used for a new deposit on my next house.

    Anyway, thats the background. I was considering whether it would be better to try to get the second charge removed early using my new deposit money? As the property is now worth about £95k max then 15% is £14,250. If I can negotiate with Rose Shared Equity to say £10k to remove the charge would that be worthwhile looking at my figures? I'd be spending £10k of my saved money but I wouldnt have to pay 15% of the value to Rose when I sell the property next year. Say I then sell it for £95k, after I've paid the mortgage I'll get £10k back (obviously minus all the fees).

    Does this approach make the most financial sense? Would it be recommended to get rid of the second charge before selling or getting to the 2019 payment date?

    Also, there must be some forum members that have had Barratts Head Start or the similar Dream Start Schemes who will have gone passed their repayment dates by now - does anyone have any experience of that which they could share?

    Thanks for all your help in advance.
Page 1
    • chanz4
    • By chanz4 30th Sep 16, 9:42 AM
    • 9,794 Posts
    • 2,840 Thanks
    chanz4
    • #2
    • 30th Sep 16, 9:42 AM
    • #2
    • 30th Sep 16, 9:42 AM
    I can see them laughing, they are not going to take less that the already lower than expected equity
    Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.
    • Chz_uk
    • By Chz_uk 4th Oct 16, 2:55 PM
    • 4 Posts
    • 1 Thanks
    Chz_uk
    • #3
    • 4th Oct 16, 2:55 PM
    • #3
    • 4th Oct 16, 2:55 PM
    Years ago they offered settlement at £12.5k but I wasn't in a position to pay at that time.
    • Thrugelmir
    • By Thrugelmir 4th Oct 16, 4:36 PM
    • 51,295 Posts
    • 43,102 Thanks
    Thrugelmir
    • #4
    • 4th Oct 16, 4:36 PM
    • #4
    • 4th Oct 16, 4:36 PM
    Might as well ask. Then you can consider the options better.

    Paying down the mortgage would likewise save you interest.
    “A man is rich who lives upon what he has. A man is poor who lives upon what is coming. A prudent man lives within his income, and saves against ‘a rainy day’.”
    • Chz_uk
    • By Chz_uk 18th Oct 16, 1:41 PM
    • 4 Posts
    • 1 Thanks
    Chz_uk
    • #5
    • 18th Oct 16, 1:41 PM
    • #5
    • 18th Oct 16, 1:41 PM
    Thanks for the replies so far.

    I'm basically trying to find out if it's better to buy out the second charge, pay off say £10k of mortgage or do nothing?
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