Own Home Scheme Pros and Cons

barleysugar_2

I found this on the Home2Own website:-

Note: Previous home owners and current home owners will only be considered for a property under exceptional circumstances, they are as follows:

1. Households where there has been a relationship breakdown.
2. Existing owners/shared owners where applicants demonstrate a need for a suitable alternative and are nominated and have the support of a local authority.

We were staying with my parents whilst our house is on the market and they ended up making us homeless now i am paying 700 amonth rent and 765 a month mortgage, basically all my wages. I am in despirate need to sell and buy.

ladybird3

I think the waiting times are also affected by the area that you currently live in as I know they have different amounts of funding for different areas. I rang Ownhome AGAIN today ( went on the waiting list middle of feb) and they told me they are now working through the february list, waiting 12 weeks having been told it would only be 6 is kind of a bummer though, however Im in central london so i guess the waiting list is bigger there?

Am i right in thinking that once you're approved you have a choice of any of the co-op mortages? they seem to have some quite good rates on their website at the moment even as low as 2%. . . . . are ownhome people allowed to apply for those ones?!
Already seen a flat that I absolutely love so fingers crossed wont be waiting too much longer. . . . :j ownhome is pretty much my only option for buying now-tried to get onto the mychoicehomebuy scheme through the local agent only to be told the funding is all gone and the scheme is no longer running. . . . .but then i suppose the money would have run out when it's all being spent on cleaning out mp's swimming pools!!!!:mad: i just want a little home of my own

superfran_uk

ladybird3 wrote: »

I think the waiting times are also affected by the area that you currently live in as I know they have different amounts of funding for different areas. I rang Ownhome AGAIN today ( went on the waiting list middle of feb) and they told me they are now working through the february list, waiting 12 weeks having been told it would only be 6 is kind of a bummer though, however Im in central london so i guess the waiting list is bigger there?

Am i right in thinking that once you're approved you have a choice of any of the co-op mortages? they seem to have some quite good rates on their website at the moment even as low as 2%. . . . . are ownhome people allowed to apply for those ones?!
Already seen a flat that I absolutely love so fingers crossed wont be waiting too much longer. . . . :j ownhome is pretty much my only option for buying now-tried to get onto the mychoicehomebuy scheme through the local agent only to be told the funding is all gone and the scheme is no longer running. . . . .but then i suppose the money would have run out when it's all being spent on cleaning out mp's swimming pools!!!!:mad: i just want a little home of my own

The 2% mortgages are probably tracker mortgages. AVOID these at all costs! Interest rates can only go up, they've been as high as 17% - could you afford to pay that back?? I certainly couldn't! At 5.99% the 70% LTV rate isn't great, but it's better than the alternative of rates going sky high and not being able to pay! But yes, there is a choice.

I imagine with the collapse of HomeBuy that they're very busy right now. Chase them up (but not too much!), it could be another month between your call and your interview - it was for me.

LMcd_2

I'm quite new to this - I've just posted this on another thread, but think it may be more appropriate here:

Do you know if the eligibility criteria for Homebuy is the same as it is for Ownhome?

I called Ownhome a few weeks ago, and am waiting for a call back.

I also put in an application to Moat for Homebuy, and got a letter this morning saying they are unable to accept the application because "we feel that you are able to afford to purchase a property suitable for your needs in your chosen area without our assistance" (Not that they didn't have funding left!)I've asked if they can explain this a bit more, and am waiting to hear back.

We jointly earn under £60,000, at the moment only have £4,000 in savings and are looking to buy for the first time, so meet the main criteria. We would be able to afford the mortage payments, but haven't got enough for a deposit - and these schemes seem to be advertised as "help with your deposit"
Anyway, it doesn't matter as Moat don't have any funding left, but if we were turned down for one, is it likely we'll be turned down by Ownhome? Do they use the same assessments?

superfran_uk

The £60k max is a guide, they have to take into account where you live. For iinstance where I live in the South East, a 2-bed house requiring no work is going to set you back at least 175k - if not more (Moat offered us a 180 maximum and ownhome 197 max - for a two bed place. The house we are buying is 187 and by no means extraordinary for a 2 bed semi). Rents are equally as high, and a £60k joint income will not get you very far.

On the other hand, if you're living in the north and on just under £60k, you're practically a millionaire in comparison - and you should easily be able to afford a house given that house prices and rents are so much lower.

However just because you did not get on one scheme does not mean you can't apply to another. By all means ring them and ask, the worst they can say is no.

bambergascoigne

Hi everyone,

Man, ownhome...I applied in Feb, what are they playing at...I know I've gone about it a little ar*e about face, but I now have found a house I want to buy, a buyer for mine, and a son who needs to start school in a new area in sept...I keep chasing every 1-2 weeks but I know I'm being fobbed off. Anyone know what the average lead time is??

Giraffeseeker

There definately seems to be something that makes wait times different for different people, maybe location? I got my telephone interview date on the day I first called, and I had that just under 3 weeks later on April 2nd, and was approved. I found a house almost immediately and funding is secured for me until 22nd July. The survey was done last Friday and today Co-op said it was all good and my mortgage offer is on its way. I *think* I now get a formal offer of the equity loan from Ownhome (although I've already had a letter to tell me my funding is secure). It has been very quick for me. I'm in the East Midlands and I am divorced with 2 children. My colleague has recently called up and been told it is a 10+ week wait just to get an appointment for the telephone interview. I'm not sure if I just got lucky or if it is my circumstances (single parent) that meant I got through quicker. It seems a very big leap from an almost immediate interview in April (for me) to a 10+ week wait (for my colleague) in May in the same area.

LMcd - I do think the criteria is different with Ownhome to mychoice homebuy as I applied to EMH for the mychoice homebuy scheme first and was refused, but then a week later was deemed eligible for Ownhome.

Can anyone who is further along than me enlighten me as to what happens next? I need to give 2 months notice on my rental house and wonder if now is the right time - survey OK, mortgage approved, short chain - just one house above me - and would coincide nicely with the start of the school holidays

Wickedkitten

Unless your solicitor has given you a firm date for exchange, don't give notice on your rental.

StephyB90

Hi this is my first ever post but need some advise if anyone can help me me and my partner need to buy a house as his parents have split and they can't afford to keep the house, we have foun out today that mychoicehomebuy have run out of funding so i phone own home and was told i would get a phone call in about 8 weeks does anyone have ideas on how long the whole process takes or know of any other schemes
Thank you
Steph

superfran_uk

bambergascoigne wrote: »

Hi everyone,

Man, ownhome...I applied in Feb, what are they playing at...I know I've gone about it a little ar*e about face, but I now have found a house I want to buy, a buyer for mine, and a son who needs to start school in a new area in sept...I keep chasing every 1-2 weeks but I know I'm being fobbed off. Anyone know what the average lead time is??

If you have a house to sell, why are you trying to go through this scheme? It prioritises first time buyers, so you could be waiting a long long time and unless you have exceptional circumstances you won't be accepted.