Own Home Scheme Pros and Cons

ladybird3

Playboy999 wrote: »

Ladybird - we seem to be a day behind you. Our 7 day cooling off period is up today. I assume our Solicitor will send the final loan agreement out - am i right?

We are still waiting for the enquiries raised by our solicitor to the sellers to be answered. Its going so slow.

I spoke to them on tuesday and they said the agreements would be sent out first thing yesterday morning, I doubt however that I'll get anything until perhaps the weekend as we had a 24 hour postal strike in london on both monday and weds-havent had post since the weekend bah!!

It is very slow going you're right! feels like it's out of my hands now though

londonIrish_5

Hi Everyone! First, massive thanks for all the information that has been posted on here! As a previous poster said, it has been the only place to get any sort of information on this scheme! The ownhome website has been no help at all! Well, the nerves are well and truly kicking in with me now too! My survey was done 2 days ago, the co-op said everthing was fine...so i'm just wondering how long should it normally take between now and exchange?? I have the estate agents breathing down my neck...even though my solicitor is working away with the vendors solicitor on some issues to do with the property...the EA seems to want constant daily updates on where things are at! I'm now getting panicked by the 4 week wait that is coming up...I only found out about this from the co-op today!! I've told my solicitor about it, but have yet to tell the estate agent (although he does know i'm using the own home scheme). Just wish the EA would now stop interfering and let the solicitors get on with their job. Well, i'm guessing about 7 weeks and counting at this stage!!

wubblefish

Hello - I'm wondering if anyone could tell me what it is that P4P are doing during the 4 weeks from getting the official mortgage offer and letting you go ahead and exchange. We've had the mortgage offer from co-op this week and I am really worried that whatever P4P are doing now for 4 weeks will somehow turn our yes into a no... We've already had this house fall through once on the mychoice homebuy scheme so I'm scared to get excited at this point as feel they can still take it away from us. Do they do any more checks or credit searches or anything like that? (we've been refused a small loan this week so our credit score will have dropped..) Any help at all much appreciated!

tek-monkey

I thought it was just due to the work backlog? Surely no more credit checks are required, as getting the mortgage should be the biggest hurdle?

wubblefish

I really hope so, I just can't help worrying there's more to it than doing some number crunching and posting a 'congratulations' letter - I would have thought if it was something simple such a big backlog shouldn't come about. But that said I have no idea whatsoever so am just wondering if anyone that has come out the other side has any insight?

Cloister

grats Paris,

Now just the moving to do for you which is a pain! we have now arranged all our stuff in the new place and are setting about cleaning the old rented house.

It DOES feel good to own your own home. again good luck to all who are currently going through the motions, it's stressful and time consuming but it's worth it.

tek-monkey

My mortgage got referred as I've changed jobs recently, bah! Same line of work for the last 3 years, but swapped jobs in April. Said it shouldn't be a problem, but we'll see.

Anyway, after a conversation last night I realised I'm not as clued up on this scheme as I thought. There are things I thought I knew, but have no realised may just be assumptions. If anyone can comment I'd appreciate it.

Assumptions:
1) After 5 years, you pay interest on the value borrowed. Not the current value.
2) When buying back equity, you have to get it valued and pay appropriately.

Questions:
1) If you buy back equity, is the new house value used to calculate interest payments?
2) If your house value drops, do you pay back less or are you stuck with the amount borrowed as a minimum base?

hrlevett

Rocky33 wrote: »

Hello! Have been looking at this forum for some time now as it is the only place to get some information about how this scheme works in terms of the nitty- gritty.

We had our eligibility interview yesterday, were told to call the bank and get started on our house hunt ASAP to ensure the funding doesn't run out. I asked if it was likely to run out and the lady (at PfP) said not to chance it. I'm just a bit concerned as to how they can send all these people house hunting with this massive insecurity that there may not be any money left for you at the end!

My question is, has anyone actually got to the point where they've found their dream property only to be told that they can't buy it because there's no money left in the pot????

My other question is, what happens if your purchase falls through, and the circumstances were totally out of your control? Do you run the risk of losing out completely?

Comments and experiences would be much appreciated :-)

Cheers!!!

It happened to me we put an offer in on a house only to by told when i phoned the co op that the money had run out in the south west. As far as i am aware if the property falls through you have to start again and you just need to keep your fingers crossed that the money doesnt run out while you look for a new house. Good luck.

calmspirit

Rocky33 wrote: »

My question is, has anyone actually got to the point where they've found their dream property only to be told that they can't buy it because there's no money left in the pot????

My other question is, what happens if your purchase falls through, and the circumstances were totally out of your control? Do you run the risk of losing out completely?

Comments and experiences would be much appreciated :-)

Cheers!!!

Yes it happened to me ! Only weeks ago I was full of hope......found my perfect home......now no money left here in Kent.......... not trying to worry people....but that's how it is just so you are aware!

punkymunky

Rocky33 wrote: »

Hello! Have been looking at this forum for some time now as it is the only place to get some information about how this scheme works in terms of the nitty- gritty.

We had our eligibility interview yesterday, were told to call the bank and get started on our house hunt ASAP to ensure the funding doesn't run out. I asked if it was likely to run out and the lady (at PfP) said not to chance it. I'm just a bit concerned as to how they can send all these people house hunting with this massive insecurity that there may not be any money left for you at the end!

My question is, has anyone actually got to the point where they've found their dream property only to be told that they can't buy it because there's no money left in the pot????

My other question is, what happens if your purchase falls through, and the circumstances were totally out of your control? Do you run the risk of losing out completely?

Comments and experiences would be much appreciated :-)

Cheers!!!

Hiya, this happened to us. Got the survey back on the property we had selected but it had a lot of issues so we weren't happy to proceed. Called pfp and they told us our funding was secure and we had 4 weeks to put in an offer on another property. Luckily we found one the next day and put in an offer which was accepted for 10K below asking price. This was the same price as we had agreed on the first property so we didn't have to change anything and the process carries on as normal so just waiting for this survey to be done and hopefully it will all be good!