Own Home Scheme Pros and Cons

d0nmarc0

Hi all,

We recently signed up to the Own home scheme for first time buyers
http://www.ownhome.co.uk/faq.htm

Our interview date is looming and we are in a good position to buy.
All I want to know is Own home a good scheme, I really can't see any
disadvantages to using the scheme. Are there any cons or is this a
fantastic offer?

Also why hasn't Martin mentioned it on the site?

any advice/opinions greatly appreciated.

Maseillo

Hi
We are signed up too - our interview is in September. I think obviously there are disadvantages to using the scheme rather than buying without it - the main one being that if they lend you 40% of the property price you have to pay them back 40% when you sell so they therefore get part of the increase in value. Also the fact that after the first 5 years you have to start paying making interest payments monthly. But to be honest though the ownhome scheme is for people who are not in a position to be able to buy on their own without the help, so for them it is worth doing. If you are in the position to be able to save up and buy without using the scheme then that would be better, but if (like us) there's not a hope in hell of being able to do that then its the best option. It enables people to get a foot on the ladder when they wouldn't be able to normally and even though ownhome takes a percentage of the profit - there is still at least 60% of the profit to go to us! I've been trying to find info about people who have used the scheme and actually bought to see how their experience was but can't find any. I've seen people who are part way through the process though.

I'm just hoping that we qualify and that there's enough funding left for us! We meet the criteria as we are first time buyers earning less than 60k and are on the council waiting list. But I don't know whether they give preference to keyworkers? Also with the mychoice funding running out I'm guessing ownhome won't be too far behind. Fingers crossed though!

SJ x

SquatNow

It involves buying a rapidly depreciating asset.

Therefore it is a f****ng awful idea.

In fact it rates up their with Abe Lincoln saying to his wife "I'm bored of sitting around the house, lets go see a show!"

Any FTB buying a house now, even a portion of a house, is basically saying "I know, lets destroy our lives forever."

catd_3

Hi,
We have registered for this just this week and got told there was a waiting list but given no indication at all of how long we could expect to wait before being called back for our interview. Can anyone who has done this let me know how long they had to wait - and also their general experiences with this scheme.
Thanks!

geoffky

you will regret this decision....do a search on here and you will find out...buying a assett at top price that is losing 2k a month is not sensible....use the search button..you will find you will have made the biggest mistake of your lives if you do it...

catd_3

but the asset is not at top price - that's the point - house prices have dropped substantially in the last year - just that it is hard to borrow the money so the property is worth less now but in time, after the credit crunch has passed property prices will rise again.

lethal0r

what if you want to trade up when you sell? you are going to need LOTS of £££ to cover the money you have to pay back.

zone

Dodgy scheme.

miketong

I signed up for the scheme last year and had my interview and got accepted. I didn't end up using the scheme in the end as the house I wanted to buy was 3 bed and I was restricted to 2 bed on the scheme. I did a fair amount of investigation into the scheme and it looked like a very good idea ESPECIALLY during the current climate.

The reason for this is that by sharing the ownership you are essentially sharing the risk, in a falling housing market the you'd lose less money if you find you want to sell before the house price has recovered. This is because after 5 years, you buy them out at the current market value not the value at which you bought it even if this is less. In this case, you'd essentially had 40% of your mortgage payments paid for you for free!

I recommend this scheme above buying out right. However I agree that buying in a falling market is an inherently risking thing to do. If you plan on staying there long term, no worries house prices will recover eventually, the big question is when. Don't believe anyone acts like they know when this will be, either short or long term!

wymondham

Buying on a scheme defers the problem. If people are aware then fine, but few I think fully appreciate the problems they are storing up for themselves....

bigSIMMO

catd wrote: »

Hi,
We have registered for this just this week and got told there was a waiting list but given no indication at all of how long we could expect to wait before being called back for our interview. Can anyone who has done this let me know how long they had to wait - and also their general experiences with this scheme.
Thanks!

we've just tried the exact same thing and still haven't heard anything, phoned up in the beginning of dec 08 and they said they are fully booked with appointments but would give me no indication as to when i would be called back other than " maybe sometime in the new year"!!!! i tried again last week and was told that they have no idea when i'll be called back but i will be called back... not so sure tho!!!! still waiting