Own Home Scheme Pros and Cons

shanqs1

My mortgage application has got approved by Co-op, who also confirmed that they will send email to P4P to secure the funding for me today. so happy!

I was approved the maximum of 4.5 times gross income, which make my dream house purchase look realistic now (I did the calculation based on this 4.5 times and left me no back-up if the figure come short to that, hughhhh)

Will be waiting for the next to happen...

Gem2275

Hello everyone,

I'm a newbie, not even sure if I'm posting this correctly! Wonder if some of you kind people can help me.

I've read through a few pages of this and it seems as though most of you are quite far along in the process. I applied for the ownhome scheme on the 10th April and still haven't recevied my letter for the eligibility interview. I've been calling to chase virtually every week since mid-June and keep getting told it will be arriving in the next few weeks. With all this talk of funding running out I'm wondering whether it's time to give up hope!

Can anyone give me an indication of when their initial applications were made in comparision to when they received the letter?

I've also been told not to look for properties until I have been approved. Is this advisable or should I get out there so that I'm ready to go as soon as I hear from them?

Congratualtions to all of you that have your funding! Any advice would be greatly appreciated.

tek-monkey

I'd say not to look til you know for sure. By all means trawl rightmove etc. to see whats about but no point putting an offer in til you know (I wouldn't even view TBH, as you'll get dissapointed when it goes and you can't buy). I'm suprised at the wait though, I applied at the start of June and I've had confirmation (west mids).

Gem2275

tek-monkey wrote: »

I'd say not to look til you know for sure. By all means trawl rightmove etc. to see whats about but no point putting an offer in til you know (I wouldn't even view TBH, as you'll get dissapointed when it goes and you can't buy). I'm suprised at the wait though, I applied at the start of June and I've had confirmation (west mids).

Thanks for the advice. I thought that but wanted to make sure I wasn't missing a trick!
I'm in Bromley, which is technically Kent but is also a London borough so not sure what they'd class it as. Am hoping London as that's where I want to buy.
Seems like a long wait in comparison to you. Am worried that I'll never hear!

ozzyozzy

Ama wrote: »

Thanks for your replies Mandy_X and Ladybird3.

I have another question. I've only got about 4.5K in savings to to facilitate buying a property through the ownhome scheme. I've seen a property that I am interested in but the vender wants 265k which means I am looking at stamp duty of around 8.5K. I was wondering whether the co-op allows people to add the cost to their mortgage.

As usual clarification on this would be much appreciated.
Many thanks

NO of course you cannot add it to the loan, stamp duty is payable. I am a financial advisor is it wise you going for such an expensive property when you patently have not got the money for stamp duty even ? You only have £4.5k in savings - is this seriously true ? if so you should not be buying anything. I WOULD ADVISE YOU TO RENT FOR THE NEXT 5- 15 YEARS. Many thanks - Peter.

ozzyozzy

stampychan wrote: »

Well, I spoke to p4p again yesterday, who confirmed they hadn't received any emails. Then I spoke to Co-op who said they'd actually sent 2. They were really friendly and said they'd send yet another one, cc:ing in the first two people who had sent emails. Pretty sure I've got all of my bases covered on it now

When I spoke to p4p the guy was really casual about everything, and said there's still lots of funding left in London so not to worry. Not sure how much of a comfort this will be for people who are still trying to get offers accepted, but thought I should mention it.

The PFP guy is spinning you a lot of crap - Funding is OUT in about 1 week in London, i heard it yesterday from the horses mouth at Head Office.....and they usually never talk ! thanks

stampychan

ozzyozzy wrote: »

The PFP guy is spinning you a lot of crap - Funding is OUT in about 1 week in London, i heard it yesterday from the horses mouth at Head Office.....and they usually never talk ! thanks

Well, I seem to be in luck - phoned again this morning and they said the funding is confirmed and they sent my letter out yesterday. If what you've been told is true, then that was a really close call - phew. Glad I'm past this massive hurdle now!

Gem2275

stampychan wrote: »

Well, I seem to be in luck - phoned again this morning and they said the funding is confirmed and they sent my letter out yesterday. If what you've been told is true, then that was a really close call - phew. Glad I'm past this massive hurdle now!

That's great news! Would you mind letting me know what your timeline was? When did you initially call, get your interview, etc? I presume that you are in London??

Thank you!

hertsman2009

stampychan wrote: »

Well, I seem to be in luck - phoned again this morning and they said the funding is confirmed and they sent my letter out yesterday. If what you've been told is true, then that was a really close call - phew. Glad I'm past this massive hurdle now!

Well done mate! It's definitely worth persevering with this scheme. I kept hearing that "funding was out" and not to bother waiting for a letter a few months ago, yet i had the property surveyed on monday!

I get a feeling people get told different things from PfP. There is alot of guessing on this thread with regards to the funding pots for each region, whether they are educated guesses are not they're still guesses and no one truly has an informed opinion. And as mentioned before, money can always be reallocated to any pot if parties don't complete.

"Plan for the worst, hope for the best"

stampychan

Gem2275 wrote: »

That's great news! Would you mind letting me know what your timeline was? When did you initially call, get your interview, etc? I presume that you are in London??

Thank you!

Hello! Yes, I am in London. Here is my timeline although it is fairly rough as I can't remember exact dates for everything - initially the whole thing was just done on the off-chance because my sister had mentioned OwnHome to me! I didn't expect they would actually offer it to me!

12th Feb – phoned OwnHome and put in my application.

Sometime after that (really sorry I can’t remember!) I arranged an interview. Probably had the interview around the beginning of June.

Had interview, then received the letter (this I do know because it’s dated on 12th June. Applied for mortgage on the same day that OwnHome accepted me.

[If anyone’s interested, on a salary of 24.5 they offered a max purchase price of 212, and a minimum mortgage of 85750. Co-op offered a mortgage up to 112, iirc]

Looked for places for a while, didn’t find anywhere decent, gave up looking, got property alert through from estate agents for perfect perfect beautiful place. Saw it, put offer in, Co-op emailed OwnHome and sent out my mortgage offer documents on 30th July.

Got well and truly messed around by estate agents, had to up my offer by 5k. Amended mortgage offer documents and got Co-op to resend the email to OwnHome on 13th August.

Have now instructed solicitors, received Memorandum of Sale, and today received verbal funding confirmation from OwnHome. Survey is booked for Thursday.

Hope this helps…?