Own Home Scheme Pros and Cons

superfran_uk

StephyB90 wrote: »

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

You will get a call probably in 8-10 weeks. They will make an appointment with you, mine was a month after the initial phone call, to assess your eligibility. If you are eligible you will be told there and then and you can start looking for a place. So about 3 months I would say, at a minimum, before you will know whether you can go ahead and look for a place.

bambergascoigne

superfran_uk wrote: »

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.

Because we want a bigger better house in a nicer area...My wife's a keyworker, and we're eligible...So why not?

shanqs1

Hi, after browsing through all previous discussions on this scheme, I have not yet found the answer to my question, which is the following:

I have an annual income(salary) of X, Co-op can lend me 4.5X (according to what their website says); I have a deposit of Y. Question: the maximum price of a home that I can buy, is it:

1: 4.5X/60%+Y

or is it

2: (4.5X+Y)/60%

in other word, the deposit that I have will it be combined with the Co-op mortgage to be considered as 60% of the property value?

Anyone who has actually got onto the scheme might give me a hint?

bambergascoigne

shanqs1 wrote: »

Hi, after browsing through all previous discussions on this scheme, I have not yet found the answer to my question, which is the following:

I have an annual income(salary) of X, Co-op can lend me 4.5X (according to what their website says); I have a deposit of Y. Question: the maximum price of a home that I can buy, is it:

1: 4.5X/60%+Y

or is it

2: (4.5X+Y)/60%

in other word, the deposit that I have will it be combined with the Co-op mortgage to be considered as 60% of the property value?

Anyone who has actually got onto the scheme might give me a hint?

Its up to you i think...Ownhome could offer you 40% of the value, you could then top it up with your deposit and the mortgage would cover the rest as i understand it.

The house i want is £250K, im going to put £25K, ownhome will (hopefully) put £75K and I'll get a mortgage for £150K which is 10% deposit, 30% ownhome and then I can get the 4.99% fixed rate from coop for the rest

superfran_uk

bambergascoigne wrote: »

Its up to you i think...Ownhome could offer you 40% of the value, you could then top it up with your deposit and the mortgage would cover the rest as i understand it.

The house i want is £250K, im going to put £25K, ownhome will (hopefully) put £75K and I'll get a mortgage for £150K which is 10% deposit, 30% ownhome and then I can get the 4.99% fixed rate from coop for the rest

They will give you a maximum amount for your house purchase based on the number of rooms you are allowed and where you live. £250,000 seems a lot?

So this is how it worked for us:

They gave us the max house price - 195ish - and the minimum mortgage amount we would be expected to take out - 127500 ish
The house we wanted was 187,000
Ownhome loan of 30% - 56,100 (we could not take more as you have to take out at least the minimum mortgage. It also had to be 20,25,30,35 or 40% exactly)
Our part - 130,900.

Our deposit came out of OUR part, so that our mortgage is now less, but the ownhome loan is not affected. I think this is the way you have to do it.

bambergascoigne

superfran_uk wrote: »

They will give you a maximum amount for your house purchase based on the number of rooms you are allowed and where you live. £250,000 seems a lot?

So this is how it worked for us:

They gave us the max house price - 195ish - and the minimum mortgage amount we would be expected to take out - 127500 ish
The house we wanted was 187,000
Ownhome loan of 30% - 56,100 (we could not take more as you have to take out at least the minimum mortgage. It also had to be 20,25,30,35 or 40% exactly)
Our part - 130,900.

Our deposit came out of OUR part, so that our mortgage is now less, but the ownhome loan is not affected. I think this is the way you have to do it.

fair dos and thanks for the info...We have 2 kids, so could technically need a 4 bed, but we want to move area, and i'm thinking now that could be the sticking point...we only want to move like 25 miles down the road, but it might cause some issues...

superfran_uk

bambergascoigne wrote: »

fair dos and thanks for the info...We have 2 kids, so could technically need a 4 bed, but we want to move area, and i'm thinking now that could be the sticking point...we only want to move like 25 miles down the road, but it might cause some issues...

As far as I am aware, you can have one more bedroom than you need. I think I recall reading that if both children are of the same sex, this means three beds rather than 4 as they are expected to share.

Giraffeseeker

superfran_uk wrote: »

As far as I am aware, you can have one more bedroom than you need. I think I recall reading that if both children are of the same sex, this means three beds rather than 4 as they are expected to share.

I have 2 boys and was told I could go for a 4 bed, although I've only gone for 3 (less cleaning )

shanqs1

superfran_uk wrote: »

They will give you a maximum amount for your house purchase based on the number of rooms you are allowed and where you live. £250,000 seems a lot?

So this is how it worked for us:

They gave us the max house price - 195ish - and the minimum mortgage amount we would be expected to take out - 127500 ish.....
QUOTE]

Thank you very much Superfran_uk.

£250k seems a lot, but it doesn't take you very far in London, as we have one child and another one is on the way, we would need a 3 bed at least, and price for that in London, even not central,would easily reach that figure, in fact I am actually looking at £280k-£300k, to be realistic.

I have a further question, how many times(multiples) the Co-op bank would let you borrow at the highest? Is it 4.5 times annual income if a single application?

bambergascoigne

superfran_uk wrote: »

As far as I am aware, you can have one more bedroom than you need. I think I recall reading that if both children are of the same sex, this means three beds rather than 4 as they are expected to share.

we have a boy and a girl, but i think maybe we are expecting too much from the scheme...

Does anyone know if you're able to move area? We're in the west mids but plan to move about 26 miles away (from my wife's nursing job) into Worcestershire. Firstly I can see a problem as we're applying for funding from our west mids postcode, and also ity might mean we'd be living too far from my wife's job...