My Choice Homebuy First Time Buyers Initiative

Treharne13_2

Could anyone fill me in on the finer details of My Choice Homebuy Scheme? Equity loan from government of 50% towards a property on open market, a small fee of 1.75% on un-owned equity and un-owned equity fee increases up to Retail Price Index plus 1% from year two. What information do you give when you apply for a mortgage? Thanks

Treharne13_2

Thanks for taking the time to reply

inamess200

Hi - this is what i found out in May when I looked into it

You need to register with the local housing association who administer the scheme have to be a key worker or FTB. Then you have to get Mortgage in Principle for what you can afford ( only lenders currently lending against this scheme are halifax and nationwide ) then send this to scheme adminsters who agree and amount you could borrow ( if they have funds left however no funds are earmarked so if you find a property put in an offer and get a mortgage offer there may not be any funds left so sale collapses!!!)

Its all a bit in the scarey as the commitment for funds appears to be at the very last minute - it also means new houses will stay high artifically.

I expect there is alot more but thats what I found out hope it helps

MDE

Find out who the agent is for your area, apply to them then they will send you the information.

Sorry I can't be any clearer but I think that different zone agents use different procedures!

Treharne13_2

I was accepted by my local area for the scheme but was unsure as to the terminology used in relation to fee charges and the meaning in real terms what costs are incurred, so would appreciate further information on this. Apparently in my local area I need to attend an interview with their allocated financial advisor providing all paperwork, proof of earnings, savings, employers reference etc. and they will then tell you how much they can allocate you, so until this stage I cannot put an offer on a property. I'm interested as to why Halifax and Nationwide are the only lenders? I would have hoped that lenders would have seen this scheme as a good risk as you have to go through a lot of vetting before being accepted and the government has backed you with the purchase. Do you know what the stipulation or risk is that stops lenders getting involved via a government funded scheme? Thank you

happybroker

I think it's possibly because the governemt are involved in the first place....two words...Northern Rock

Bevann

I am currently going through this. As far as I know it's not just nationwide or halifax. I think whoever said that is confusing it with the schemes it replaces. A lot of high street lenders will do a mortgage for it. Although Woolwich won't - they claimed Moat (housing association scheme is through) don't like their mortgages! I did my intitial financial assesment over email with one of the people they list. Then you ahve to send them ID, proof of income and references (employer, landlord if you have one). They don't ask for mortgage, as you can't do that until you have finalised amounts from Moat (I have been told I will get this next week). Be warned - they aren't fast and you do have to keep badgering them as they are not likely to tell you if they are still waiting on references etc. That's all I know. You will get changed interest on the loan at 1.75% initially. I am aiming to save to pay of some of the loan before prices go up, so will save more in the long run.

Treharne13_2

Really helpful thanks.

mccorms_2

The problem is with these schemes, Is that people get confused I am currently registered with 2 in the south west the first one "My choice Homebuy" or "Open Market homebuy" as it is sometimes called is where the goverment will lend you 15% to 50% of the property value in an equity loan (depending on circumstances) the fee for the loan is 1.50% rom the start, the mortgage can be with any lender, However be aware that sometimes the stipulation on this is that the home you buy is a brand new build. The second scheme is "Ownhome" also an equity loan up to 40% of the property price. The home can be bought on the open market but the mortgage must be with the Co-Operative bank. The equity loan payments do not get paid in the first 5 years but at this point it is 1.75% until year eleven when it rises to 3.75%. The problem I have come across is what has already been mentioned you are not guranteed the loan even after being accepted onto the scheme, If there are no funds available you are up the creek. Hope this helps anyone who has been a bit confused.:rolleyes: