Own Home Scheme Pros and Cons

josyjo85

Hi
We have just been cleared for own home funding and our mortgage has been ok'd subject to pay slips etc.
You can stair case after 5 years at 5% a time as long as you pay for another valuation. So if you really want to make it work for you if you can afford to squirrel away a set mount each month so you have a nest egg to buy it back. We are going for the 3 year fixed rate no fee to pay then i can imagine we will try and remortgage elsewere and pay the loan back if the housing climate is appropriate. Own home is also not shared owership. you are paying no one rent and if you cannot afford the tiny intrest payments then presumably you can't afford a mortgage either and will have your home reposesed. sorry to sound like all the stuff they right but I have had to explain this to 2 estate agents, a solicitor and some very dubious family members.
Good luckwith your interviews and have no fear the people are very nice I waunder if there are any more cheques going for me?
Josyjo:j

thepeachyone

Ive registered for this too, and Im looking into shared ownership. Its good to hear from people who it has worked for.

A lot of people say that the co-op mortgages are bad value, but at the moment there doesnt seem to be a lot of choice anyway, unless you have a sizeable deposit, in which case you wouldnt be bothering with homebuy or shared ownership.

barneystuta

Hi guys,

Looking into something like this myself. But just a quick question here:

- Firstly, say I see a property valued at £100,000
- I have £5,000 deposit. With little (or no 95% LTV's I wont get a mortgage)
- I sign up for an 'equity loan'. And get offered £25,000.
- This means I now borrow £70,000
- I earn £20,000pa

So, I need to borrow £70,000. Now what is the LTV based on?

a) Is it based on the £5,000 I funded myself. In other words, I pay £5,000, and borrow £70,000. Which means my LTV is about 93%

or

b) Is it based on the amount I borrow, against the property value. Which means my LTV is 70%

May seem a bit of an obvious question, but I just want to get that around my head first.

sarastark86

hi barney,

if the property you are looking at is 100k, and you borrow 70k, then your LTV is 70%. It is simply the amount you borrow in relation to the value of the house. If your deposit was 15k instead of 5k, you would borrow 60k which would be a LTV of 60%.

barneystuta

Thanks for clearing that up. Shame I don't qualify for where I wanted to live (I live just outside the 'area').

But its worth knowing.

ilemi

We 've been accepted on the ownhome scheme last week after being on the waiting list since october. Did you get any letter from places for people to confirm this? we got an eligibilty reference number but estate agents just need to see some documentation.

Maseillo wrote: »

Hi
Just to let you know that we bought our house in this scheme (I actually answered this thread a while ago while we were waiting for our phone interview). We waited about a month for our phone call, and from then on it went really smoothly. We got accepted, got given a reference number and then called the co-op and got accepted for the mortgage. Ownhome and the co-op were both great and our house purchase went through very smoothly and very quickly. There were no problems at all. Of course it would have been better to buy by ourselves but we just couldn't do it, so for us this was the best option. We are all settled in our new house now and couldn't be happier! Plus a few weeks after we moved, ownhome wrote to us saying they had been given some extra money and were giving grants to people who had completed their house purchase within a certain time - and promptly sent us a cheque for £1500! That was an extra surprise! Don't suppose they will still be doing that now though.
Anyway just wanted to let you know that they will call you back, and if you go ahead with it then it can go through nice and easily!
SJ x

ilemi

We 've been on the waiting list for the ownhome scheme since sept/oct 08 and we've been accepted last week. excited. we just need to look for property and get a decision from the coop. we hop it all goes well

Maseillo

You should get a confirmation letter from them. However we got our confirmation from the co-op for the mortgage first. I rang ownhome up to see if we were supposed to receive something from them because we hadn't and they said we should have been sent a welcome letter explaining the process, and they sent it to us then. Our estate agent didn't ask to see anything though so it wasn't a problem for us. The letter will have the reference number on that you need to give to the co-op for the mortgage application. However they gave us the ref number over the phone so we didn't have to wait for the letter. Good luck!

SJ x

fogma

hi there,

we applied November last year but haven't heard anything yet.

can you tell me the process when they phone you back. Do they give you an interview on the phone and then phone you back again confirming whether you have been successful, telling you the equity loan they will give you and tell you any conditions of the houses you can buy?

Just wanting to prepare ourselves for any phone call we get.

Wickedkitten

barneystuta wrote: »

Hi guys,

Looking into something like this myself. But just a quick question here:

- Firstly, say I see a property valued at £100,000
- I have £5,000 deposit. With little (or no 95% LTV's I wont get a mortgage)
- I sign up for an 'equity loan'. And get offered £25,000.
- This means I now borrow £70,000
- I earn £20,000pa

So, I need to borrow £70,000. Now what is the LTV based on?

a) Is it based on the £5,000 I funded myself. In other words, I pay £5,000, and borrow £70,000. Which means my LTV is about 93%

or

b) Is it based on the amount I borrow, against the property value. Which means my LTV is 70%

May seem a bit of an obvious question, but I just want to get that around my head first.

It's the other way round is it not?

You qualify to receive the loan, then you see their co-op mortgage advisor who tells you the the maximum mortgage you can get and then you get a topup by at least 20% and a maximum of 40% over the maximum mortgage amount that you can take out.