Own Home Scheme Pros and Cons

sideslipmike

Hi again guys,

Jut recieved my final papers to sign for the P4P loan and i was curious obviously after 25 years of paying an interest only loan what ideas have people thought of, of how they are going to re-pay the amount they borrowed?? As i told them i was gonna use my gruterity from my job when i retire but the wife and i thought well after 25 years when the kids have grown up and fingers crossed moved out we`ll look into selling up and moving into a smaller home and use the sale of our home to re-pay the equity loan. What are other peoples views of paying their equity loan back please??

nig0609

i plan to overpay the mortgage as much as possible, save up, and then remortage (when i have more than 50% equity) to pay off the equity loan

tek-monkey

nig0609 wrote: »

i plan to overpay the mortgage as much as possible, save up, and then remortage (when i have more than 50% equity) to pay off the equity loan

Pretty much my plan. Chuck all funds I have into my overpayment fund, buy more when I can as long as house prices haven't risen too much. If they have getting it revalued will screw my interest payments, in which case I'll just keep overpaying. I plan on selling before the 10 year interest hike, and buying a new place that is completely mine.

Seacow_2

I signed my final paperwork and sent them to optima last week.

I emailed optima asking when I could exchange, 2 days later I was emailed back and I was told they got a letter from the sellers solicitors (a month ago) saying that they have not yet found a property to buy (they had an offer accepted but this fell through).

I talked to the EA and they contacted the sellers and they still haven't found a property.

The offer was conditional on the seller finding another property but it has been nearly 3 months now.

My funding is secured until the 2nd of December, at this rate I doubt my purchase is going to get completed in time.

This has come as a bit of a shock, the EA has past on the information to the sellers about my deadline, I don't know if I will be able to get funding secured on another property, and I don't want to go through all the paperwork again.

I will contact p4p tomorrow and see how flexible the deadline is. Hopefully the fact that I am ready to buy will put the sellers in a stronger position.

I thought it was all going to over, now it seems that everything is going wrong.

tek-monkey

The more I hear, the more I'm glad I avoided Optima!

Giraffeseeker

nig0609 wrote: »

you start accruing interest from the day of completion. The first payment is not taken immediately, but is taken on the date of the direct debit you would have agreed with co-op, so, in theory the first payment may be up to double the regular payment. e.g. complete on 2nd, and DD on 1st will be double. if complete 15th then DD will be 1.5times.

I hope that makes sense, it is my interpretation of how they explained it to me.

You are correct, I completed on the 15th of July, and on 1st August I paid £660. My normal payment is £440. Therefore, I paid 50% extra the first month (to cover 15 days "arrears") and am now paying in advance. Depends when you complete. I guess the 30th would be the best day.

thebrightonion

mrbodly wrote: »

Hi All

At what point was your Ownhome funding secure?

Funding in my area (East) ran out last Monday 24th August...Grrrr.

I had my eligibility interview on 5th August, was approved and given a ref no.
Viewed a property on the 6th, after some negotiating had offer accepted on the 10th, called Co-op same day to apply for mortgage, had my application referred.

Anyway after lots of hassle dealing with the co-op who have lost my faxed credit file not once, not twice, not thrice but four times I have been promised a decision this week.

The way I understood it, according to the Ownhome brochure - once you called the Co-op to confirm you'd found a suitable property they email ownhome confirming this and hence securing your funds.

I'm pretty sure I've missed the boat, thanks to the Co-op delaying things by well over a week due to not calling when they say they will, losing paperwork and not calling to ask for it to be re-sent.

This is a great scheme, just wish the Co-op hadn't been such a pain to deal with. Their incompetence was incredible!

I have also been referred by the Co-op, appealed and have now been told my appeal has failed. Funds were being held for me as I applied before the scheme was closed and made an offer on a property.This mortgage refusal due to a default notice that has recently appeared on my credit file. It dates from 2004 and I knew nothing about it. It was registered by a debt collecting agency called HFO Services and I have written to them several times by recorded delivery without response. Experian will not remove it and only suggest that I appeal to the Financial Ombudsman. Meanwhile my chance for a home has gone down the tube. I doubt if anyone has any suggestions do they?

rngeena

we moved in on 1st of september and the first double mortage will be taken of 1st of october. So it is one month after we moved in.

Playboy999 wrote: »

I know im thinking ahead here but for those who have completed - when was your double mortgage payment taken by Co-op? Was it as soon as you moved in or the end of that month? Just want to get a rough idea!

Ama

ozzyozzy wrote: »

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.

I asked a question.. I know where to go if I need preaching to. You do not know my circuimstances so don't judge!!

If you are a financial advisor, then perhaps you should listen to your own advice and rent for 5-15yrs!! Afterall you know best and shouldn't need government help.

tek-monkey

I have (had!) 1.6k in savings. This is now gone, I am still not sure if I'll be buying the house. This is an expensive game, but I have 1/3 of what Ama has and I still felt it worth a punt. At worst I'll have learnt a 2.5k lesson, once all costs are in. If its cheaper than renting its worth doing.