Own Home Scheme Pros and Cons

mell242

I've just phoned up and was told that they are not accepting anymore applicants. Funding has run out and is extremely limited for those awaiting call backs.
I'll just keep saving for a deposit :-)

tek-monkey

Just took a look homesandcommunities who seem to think all funding is now allocated. Also seems to say that the ownhome scheme won't run again, third paragraph states that future schemes will be to stimulate the housebuilders too.

As a result of high demand, all funding for the Open Market HomeBuy products for 2009/ 2010, MyChoice HomeBuy and Ownhome, has now been allocated.

Individuals and households who could benefit from Government assistance to purchase their first home should examine the other affordable home ownership products that the Agency funds, including HomeBuy Direct and New Build HomeBuy and contact their Local HomeBuy Agent if they would like further information on these products.

Funding for low cost home ownership in future will be concentrated on products which help first time buyers and simultaneously maintain activity in the housebuilding sector through new build. HomeBuy Direct and New Build HomeBuy achieve both of these aims.

Agbe

tek-monky:

Yes, that is what worried me - the claim that all funding has now been allocated. It seems like they're saying there is no money left for anyone who is waiting.

However, when I looked around, I found statements claiming that if you applied early this year, you should be OK. It was all very unclear, which is why I called them.

What I was told was that within six weeks of the new lot of funding (April), they had so many applicants that they realised they could not continue taking any more. I was also told that given that we applied in April, we will be fine.

Whether that's true or not . . . . we'll have to wait and see.

tek-monkey

Didn't call them til June, so guess thats me out!

Agbe

tek-monkey (Sorry, have no idea how to quote!):

Not necessarily. It's worth calling and checking. All of the statements I've read are unclear and unhelpful. The "announcement" seems to have been made on July 2.

From what I can gather, from my phone conversation today, it's now (for those who have already applied) a matter of first-come-first-served, and I was advised that when things get going, to try to secure a home as quickly as possible.

Stressful, but worth a try, I guess!

tek-monkey

Agree, its worth a try! If I get an interview I'll give it a go, if not will just wait til I can find another scheme or maybe even save a deposit!

Maseillo

When we did it we were told that we had money allocated to us for 6 months. Basically we knew what our budget was, they allocated us the loan amount that we would need, and they said that it would be held for us for 6 months so we didn't have to rush into buying somewhere - as long as it was within 6 months we were guaranteed the money. Has that changed now, as some of you are saying that you need to secure a house asap?! As it happens we managed to find a great house really quickly so we were done and moved within 3 months anyway. I'd check whether its held for you though - would be a shame to rush into buying something thats not quite right if you have a bit of time to think!

SJ x

Agbe

Indeed. Same here.

Our only problem is that we're in London. We are already saving for a deposit, but even if 10% is enough, it'll take about three years. And God knows how much homes will cost by then.

But, c'est la vie! We will try what we can, and if it doesn't work, it doesn't work.

Agbe

Maeseillo:

What I was told was that as funding is running low, it may well run out by the time the allocated time is over. If you see what I mean. We applied in April, and have been looking at places since then. We've made no offer, and don't intend to, until we have funding confirmed; but we want to be prepared and ready to go as soon (if) we hear that we do.

zoomy

Maseillo wrote: »

When we did it we were told that we had money allocated to us for 6 months. Basically we knew what our budget was, they allocated us the loan amount that we would need, and they said that it would be held for us for 6 months so we didn't have to rush into buying somewhere - as long as it was within 6 months we were guaranteed the money. Has that changed now, as some of you are saying that you need to secure a house asap?! As it happens we managed to find a great house really quickly so we were done and moved within 3 months anyway. I'd check whether its held for you though - would be a shame to rush into buying something thats not quite right if you have a bit of time to think!

SJ x

That was in the good old days! Now funding is not allocted until you have an offer accepted on a property and the co-op have agreed your mortgage!

Have to say I found it quite stressfull trying to find somewhere quick but if you do your homework and work out exactly what you want (and what you're willing to compromise on to stay in budget) then you can get there very quick!