Own Home Scheme Pros and Cons

superfran_uk

Ours took a week, maybe 2. Be patient, give it a fortnight and then chase them - I'm sure they are busy, given that HomeBuy has completely run out of funding!

Playboy999

my partner received his letter from Ownhome about a week ago and it listed certain information that you must answer yes to but nothing that mentioned the minimum amount you must earn. The interview is Friday so we will just have to wait and see.

Has anybody else had their interview recently and Ownhome mentioned anything about this?

superfran_uk

Playboy999 wrote: »

my partner received his letter from Ownhome about a week ago and it listed certain information that you must answer yes to but nothing that mentioned the minimum amount you must earn. The interview is Friday so we will just have to wait and see.

Has anybody else had their interview recently and Ownhome mentioned anything about this?

I'm confused. Surely between you you earn over 15k??! If not, why are you considering buying a house, it is not enough for two people to live on and pay a mortgage.

Playboy999

Sorry my fault - yes we do earn over 15k between us - i was asking if anyone definatley knows if there is a minimum amount you must earn.

superfran_uk

If it's not indicated (and I can't find it anywhere) it probably means it's dependent on the area.

Basically if you're a couple then between you you need to earn a minimum of 20% of the house price per year minus debts. This is based on 3 x salary and getting the full 40% ownhome loan. If you earn 20k between you, have no debts, and you live in a place where a 2 bed flat is 200k, you don't have a chance as even with the full loan you'd still need a mortgage of 6 x salary - this would be far far too much for any lender to consider. If however you earn 20k between you, you have no debts, and live in a place where you can get a nice semi for 85k, then your chances are much greater.

Don't take this as gospel, but I'd say it's probably a good rough measure.

Playboy999

Thanks Superfran_uk you have been a great help.

The house prices in our area are really cheap at the moment so could easily get a 2 bed semi for £85k.

Playboy999

Just to confirm, i have spoken to Ownhome today regarding the minimum amount you must earn. They said there is no minimum but it obviously depends how much you earn and if you can afford the mortgage etc after debts. Hope this helps.

Giraffeseeker

thinksaving wrote: »

We are now in the final stages. We have received our final mortgage offer last Thursday in the post but haven't heard from Places for People yet regarding our final loan offer. I have phoned them and they said they have been informed by the bank that the final mortgage offer has been issued but they said they are very busy at the moment so can't tell me when they will be able to process the final loan offer. Can anyone tell me how long we can expect to wait for this?

I got my mortgage offer on May 22nd and my loan docs on 9th June, after which point there is a 7 day cooling off period. I got the 2nd set of documents today to sign. They will call you on the day they are sending them out to clarify some details. I got my phone call on a Saturday and the girl said she was on overtime as they are so busy with so many offers to get through. Hope that gives you an idea of timescales.

wildgill

Thanks for confirming that Playboy....Im glad that they will consider lower income families as surely this is what the scheme should be about. I mean what are the alternatives, staying with Parents, social housing or paying highly inflated private rents? If an applicant is considered to be earning too little this will be reflected in the amount they can borrow and a strict affordability will be done. The way I see it apply, dont get your hopes up and see what the people holding the purse string come back with. Good Luck everyone. x

superfran_uk

The other alternative is to get a job with higher pay. That is certainly what I would do if I earned less than 20k and wanted to buy my own house. Remember it's not a right, many people will never be in a position to buy. For someone on a low wage it may never be a sensible option.