Own Home Scheme Pros and Cons

tek-monkey

SOME schemes are scams, the ones where builders price the part ownership places higher than sale ones certainly are. However, this is not one of them. I think (may be wrong) that the main people with these issues are annoyed at high prices, and think its these schemes that inflate the prices. What actually inflated the prices was rampant credit availability, and especially the BTL market.

Strangely the BTLers don't seem to get as much ire as the part ownership schemes, despite them removing properties from the potential pool and keeping them as rentals rather than peoples homes. Maybe its the BTL people who don't like part ownership, as it cuts out the need for as many rental places?

hertsman2009

tek-monkey wrote: »

SOME schemes are scams, the ones where builders price the part ownership places higher than sale ones certainly are. However, this is not one of them. I think (may be wrong) that the main people with these issues are annoyed at high prices, and think its these schemes that inflate the prices. What actually inflated the prices was rampant credit availability, and especially the BTL market.

Strangely the BTLers don't seem to get as much ire as the part ownership schemes, despite them removing properties from the potential pool and keeping them as rentals rather than peoples homes. Maybe its the BTL people who don't like part ownership, as it cuts out the need for as many rental places?

Well said tek-monkey, also the people that are anti-ownhome always seem to be mega violently against it. Maybe they're angry at something else and just need some place to vent. I don't know why else you'd just pop onto a Thread that is on a topic you hate so much, drop in some derogatory comments then not contribute anymore.

By the way, i posted my mortgage application on the 14th and it was approved on the 20th. Valuation of property is on monday and as someone has said before, they submit it same day to the Co-Op. It seems like the Co-Op are speeding things up a little?

breadlinebetty

I agree - some of these angry people do get into a strop about OTHER people's finances and decisions!:rotfl:

shrews

SquatNow wrote: »

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

It is you're right! But the present and past experiances we've had at renting have left us desperate to get on the ladder even if it means going beyond our reasnoble means

tek-monkey

shrews wrote: »

It is you're right! But the present and past experiances we've had at renting have left us desperate to get on the ladder even if it means going beyond our reasnoble means

Is it though, if its cheaper than renting? You need a hefty fall to wipe out the equivalent cost of renting, if buying reduces your outgoings then I don't see an issue. If you can afford to si tight prices will revert, just depends on how long you want to live there. I'm buying a house that will do me til retirement, and I'm only 33. If you don't move, the price is irrelevant to you as long as its budgeted for now.

Alternatively you could sit on your hands trying to predict the bottom of the crash, then realise so did everyone else and decent properties are snapped up immediately. That and of course people unwilling to sell if possible to minimise loss. You all could even push the first new boom and get the cycle back on its merry way.

londonIrish_5

stampychan wrote: »

Hi all. I second what everyone else has said about this thread being super-useful for OwnHomers! Thanks everyone!

I have a quick question: at what point is my OwnHome funding secure?

I have had the letter, the phone interview, been accepted by OwnHome and had the letter with property selection criteria, offer accepted on a flat, mortgage agreement is currently being processed and the guy from Co-op says they will be able to instruct surveyor tomorrow or Monday.

He says that once they've done this they will underwrite the mortgage then inform OwnHome. I am assuming that after this has happened I have a roughly 4 week wait before I get the letter from OwnHome to confirm. Could I still miss out on the money now?

I've read some replies that imply this might still be the case, but I'm also thinking that if other people are still being accepted on initial phone interview, I probably won't miss my chance...? What do you think? When can I breathe a sigh of relief knowing that the OwnHome money is there?

Thanks in advance for any help you can give me!

Your funding should be secure at this stage...and you should have received a letter to confirm this. With me, as soon as I had offer acceptedI called the co-op to arrange mortgage. At the end of this call they said funds were now secure. A couple of days later I received a letter from P4P confirming the funds were secure for 3 months. I was told NOT to pay for a survey until I had this letter of confirmation. Make sure you get this letter before you fork out £500 for the survey!!

Ama

Hello people, I haven't posted here before but have read many of your posts. Just wondering whether anyone could help. I'm in the process of looking for a property. I viewed one yesterday and put in an offer which was rejected. The property is on the market for 275K and I offered 245K does this sound reasonable?

Now I want to put in a second offer but not quite sure what a reasonable offer looks like. I must add that the property needs a lot of work done on it; new windows, boiler, kitchen, toilet, bath, etc.

I am worried that if I offer anything more, I may not be able to get the mortgage I need from the co-op. My annual income is £37,770 plus other income of 6k. I have two children and a £7,100 debt. I need a morgage of around £165K to be able to buy a house for £275K. The co-op don't offer mortgage agreement in priciple anymore so I am only working with what I think I can afford.

Can anyone give me some indication of how much mortgage they managed to get after their income, dependants and credit committments were taken into account?

Any help would be much appreciated.

Playboy999

My partner has received the final loan documents after the 7 day cooling off period today! :j:j . They have been signed and posted back!!!!!

Should know soon hopefully when we can exchange contracts!

tek-monkey

Ama wrote: »

Can anyone give me some indication of how much mortgage they managed to get after their income, dependants and credit committments were taken into account?

Any help would be much appreciated.

I borrowed 79.5k on a take home wage of £1352pcm. However from that I have an outstanding loan of £112pcm and an overdraft of approx £1000 at the time of processing. I may have been able to borrow more, I don't know. Might depend on the mortgage you go for, mine has repayments of £480 for the next 10 years. If you ignore the overdraft I have £1240pcm coming in, I borrowed approx 64 times my monthly income.

TBH only the co-op can really help you, as they work it out.

Ama

This is useful....Thanks Tec-Monkey