Own Home Scheme Pros and Cons

superfran_uk

martini75 wrote: »

Hi all

I am a key worker living in Oxford which is very expensive place to buy. I believe I should be able to get a mortgage for approx 140k and have a deposit of 20-25K. I am looking to get an equity loan for approx 25% (55k) which would allow me to purchase house for 220k, first of all are my sums right?

Second of all do you think I will be eligible for the type of poperty I am looking for which is a three bed house with a garden considering I am a single person. The reason I ask is becuase it's important that I have a three bed becuase I am planning on fostering children and I thought I read that they tend to only offer loans for properties that meant the needs of the applicant at the time. But what about people that are planning on extending their family in the near future?

I hate to burst your bubble Martini...

a) 220k is probably massively over the mark. We are a couple, living in a very expensive area of the south east and our max was about £190 for a two bed, and I don't know 100% why, but someone who was single in the same area as us was offered over £10k less...whch leads me on to the second...

b) No, they will not let you have a three bed! Doesn't matter how great your intentions are. Sorry to say it, but you are dreaming with that one.

If you have a deposit already and you want and can afford a bigger place, I really can't see the benefits of this scheme for you. You could get a cheaper mortgage elsewhere as the co-op only offer their own 5.99% fixed which is by no means a fantastic rate, and you are not limited to the number of rooms the allow you if you do it alone.

Cloister

er...

Have you not looked at co-op rates lately? this is their fixed rate page.

http://www.co-operativebank.co.uk/servlet/Satellite/1193206372574,CFSweb/Page/Bank-Mortgages?WT.svl=copy

but Superfran is right they have rules and they are not at all flexable.

Just so you know...

superfran_uk

Cloister wrote: »

er...

Have you not looked at co-op rates lately? this is their fixed rate page.

http://www.co-operativebank.co.uk/servlet/Satellite/1193206372574,CFSweb/Page/Bank-Mortgages?WT.svl=copy

but Superfran is right they have rules and they are not at all flexable.

Just so you know...

Yes, I have looked, and if you have a 15-39% deposit, you'll get a fixed rate of 5.99.

Taking into account that most people (couples etc) will not be eligible for the 40% rate as the minimum mortgage plus 40% will be over their max price. Certainly was for us.

barneystuta

I originally called up about 3 months back. Got my letter through to call up, and got my interview a week today.

I will follow through this thread, and I guess I can see the kind of things they are looking for.

Wish me luck :money:

jmerle

Best of luck with it and please let us know how you get on. It's useful to share others' experiences.
Can I ask how long you had to wait between calling them back and getting the interview?
We have been waiting 6 weeks now and are desperate to be accepted on the scheme. People seem to wait different lengths of time and I really hope we won't have to wait too much longer than the 8 weeks they told me.......

nig0609

Im in the South East. Got on the waiting list mid January, only just had the eligibility call last Wednesday, so 4 months for me - I had all but forgotten that I had applied!

superfran_uk

alph250 wrote: »

Martini, I think even if you were mother theresa they still would not allow you a three bedroomed place and no a cat is not a valid reason either, As a single person you're entitled to one more than is neccessary so a 2 bedroomed house.

Anyway i thought i would share my experiance; I applied on November 18th and (finally) got a letter with reference number on the 27th March i then booked the phone interview (earliest date!) for the 22nd April.

So if anyone thinks there going to get a 4-5 week turn around then i wouldnt hold your breath!

We already saw the property we wanted as it came on the market back in February got sold and then fell through on the 4th may so following 2 viewings we put an offer in and it got accepted.

I have instructed a solicitor to start work but i wont be making the mortgage application until 1st of June (just paid off a loan and waiting for it to update my credit file!)

I am also very concerned over my credit score (Silly boy when i was younger!) as its only at 673 (experion) but thats with £3700 outstanding on a loan which i just cleared so it should improve when it updates, but even so

Anybody kniow what credit score or history they got accepeted on? I just had 5 missed payments from a store card consecutivley about 12 months ago and the odd 2 missed payments from 36 months ago

Any advice would be welcomed!

Your mortgage application will be like any other. They'll take off any payments from the sum they can lend you (so if it's 3x salary it will be 3x salary - debts), and if your credit rating is bad, you won't get a mortgage - especially not at the moment. They are not necessarily more 'forgiving' than other lenders because you are on this scheme. Be honest, when you apply for the mortgage let them know about your credit history, and do not get your hopes up.

Sorry, as I know that's not what you want to hear... But if you were careless (and 5 missed payments within the last year probably would be seen as careless), it may be some years before you are deemed suitable by a lender.

eshaq786

Just wanted to ask a quick question about the number of bedrooms you are allowed to apply for. Am i right in thinking that as a couple i would be able to get a three bedroom house?

jmerle

Hi. I understand that they allow you one more bedroom than you need. In your case if you are a couple with no children they would allow a 2 bedroomed house. Hope this helps!

nig0609

And 2 adults sharing would also only get 2 bedrooms, so if you buy with a friend there would be no spare bedroom.