Own Home Scheme Pros and Cons

superfran_uk

To qualify for ownhome you can only take a 25 year mortgage. They should not have suggested otherwise. Also the person processing the Ownhome application really shouldn't have hinted at how much you could borrow, as they are not the lenders, co-op are. The will set a minimum you are expected to borrow, if co-op will not lend you this for any reason then you aren't eligible.

And I don't like saying this but it's true nevertheless...They will not care whether your debts are there because you paid for yourself to go through nun school or because you spent it all on crack, a debt is a debt and it makes you less desirable to lend to until you've paid them all off in full and on time. Clearing them is the best thing you can do now.

Remember it's not just the cost of the mortgage you have to pay. The house buying process will probably set you back at least 3.5k, then alongside the mortgage (which could quite easily go up substantially after the fixed term period) and the interest payments to Ownhome you'll have buildings insurance, contents insurance, life or mortgage protection insurance, and presumably a savings regime for when your boiler breaks down or your kitchen floods. It's not as simple as saying you can pay your rent, therefore you can pay the mortgage.

katelu

To qualify for ownhome you can only take a 25 year mortgage They said that now you can have it over up to 35 yrs (the co-op that is)). They should not have suggested otherwise. Also the person processing the Ownhome application really shouldn't have hinted at how much you could borrow (it wasn't the ownhome people but the co-op that said this!), as they are not the lenders, co-op are. The will set a minimum you are expected to borrow, if co-op will not lend you this for any reason then you aren't eligible.

And I don't like saying this but it's true nevertheless...They will not care whether your debts are there because you paid for yourself to go through nun school or because you spent it all on crack, a debt is a debt and it makes you less desirable to lend to until you've paid them all off in full and on time. Clearing them is the best thing you can do now. I completely agree but I can still prove that even with drastically overpaying on these that I have plenty for the mortgage, repayment of the ownhome loan plus all of the below.

Remember it's not just the cost of the mortgage you have to pay. The house buying process will probably set you back at least 3.5k yep I have this set aside for that purpose but may just use it for debts now, then alongside the mortgage (which could quite easily go up substantially after the fixed term period) I can prove I could pay DOUBLE the mortgage and the interest payments to Ownhome can prove I can pay these from the day the mortgage starts you'll have buildings insurance, contents insurance pay now, life pay now or mortgage protection insurance (have comprehensive employment cover), and presumably a savings regime for when your boiler breaks down or your kitchen floods. Point taken It's not as simple as saying you can pay your rent, therefore you can pay the mortgage.

I am resigned to the fact I may just need to wait a few more months and go through the process again with clearer debts. To add to the irony I got a massive pay rise today and haven't been this financially stable for years so I suppose it will just have to wait a few more months until I have the finances in place a bit better.

Giraffeseeker

superfran_uk wrote: »

To qualify for ownhome you can only take a 25 year mortgage.

I've heard people say this on here before, but I don't think it matters how long your mortgage is. My mortgage is over 30 years, Ownhome are obviously happy with that, as I got my equity loan offer last Saturday.

mary4kids

Just to let you know. Got ours, mortgage approved, the contracts from the vendors solicitor received and all happened in a week. Very happy now:) They estimated the completed date for 31th July. When it happens it happens fast.

Lindy_Loo_3

We applied about 8 weeks ago, got accepted by Ownhome but got refused a mortgage from the Co-op. Gutted because they can't accept my husband's application on his own even though he is squeaky clean (because we are married) and I have a discharged bankruptcy on my file (from debts before we married etc) which quite rightly prevents me from being able to obtain a mortgage.

Gutted but that'll be one of the terrible (and shameful) pitfalls of bankruptcy.

Good Luck to everyone else trying for the scheme.

superfran_uk

That must be dreadfully disappointing for you. However you seem to have taken it very maturely so you can have a gold star from me.

emsywoo123

Lindy_Loo wrote: »

We applied about 8 weeks ago, got accepted by Ownhome but got refused a mortgage from the Co-op. Gutted because they can't accept my husband's application on his own even though he is squeaky clean (because we are married) and I have a discharged bankruptcy on my file (from debts before we married etc) which quite rightly prevents me from being able to obtain a mortgage.

Gutted but that'll be one of the terrible (and shameful) pitfalls of bankruptcy.

Good Luck to everyone else trying for the scheme.

Hi there
Goodness I do feel for you.
Pardon my ignorance, but does that mean you will never be able to get a mortgage? I thought if it was discharged bankruptcy is not considered? Sorry I don't know much about it

Lindy_Loo_3

emsywoo123 wrote: »

Hi there
Goodness I do feel for you.
Pardon my ignorance, but does that mean you will never be able to get a mortgage? I thought if it was discharged bankruptcy is not considered? Sorry I don't know much about it

Basically lenders are looking for any reason not to lend at the moment so despite the order being discharged and most of the debts settled / satisfied (I paid most of them in agreement when I got another job) they won't consider me.

This is even though I won't be named on the mortgage and our solicitor drew up documents to relinquish any financial / squatters rights on the property to protect the lenders further.

I'm not sure whether we'll never be able to get a mortgage, we're looking at what our options are at the moment. Some lenders will give the OH a mortgage with the condition I have no rights to the property and I'm happy to sign to say this. We'd look at adding me to the mortgage when the order is removed from my credit file but by which time I expect the ownhome scheme will be gone. However, I'd still need to declare that I'd been bankrupt even though the order had been removed from my records so if a lender wanted to be particularly tight, they could still refuse me.

Quite unfair on my OH as the debts were gained long before him and absolutely nothing to do with him. If we hadn't gotten married it wouldn't be an issue, so much for doing the one thing we thought was right but then that's my burden to bear for being so foolish when I was younger.



PS - the foolish thing being the bankruptcy not getting married!

emsywoo123

Lindy Loo, you are one very calm woman!!

Lindy_Loo_3

I admit I was a bit emotional when they first said the OH couldn't have the mortgage but it was more due to how it was explained - we basically got told that if we weren't married he'd get the mortgage and I'd be able to live with him. Sucked big time!

I do now understand that they're strict on their lending criteria and I wouldn't want to lend to someone with a discharged bankruptcy on their file. I'm just disappointed that they don't take into account the fact most of it has been paid back despite the order and that I have no wish whatsoever to be part of the mortgage. We saw our solicitor who has dealt with this type of thing before and said the waiver of "Home Rights" would protect the bank completely but basically they don't want to do it.

Again, gutted but I accept that's their decision to make and we'll just have to keep saving and hope this won't affect us for the rest of our lives.

Thank you everyone for your kind words x