Own Home Scheme Pros and Cons

krisswilliams

Just had my call with Own Home eligibility after the letter I received Saturday and they said I am accepted and then rang the Co-Op Mortgage people right away after being given the number and ref number, been told I can put an offer in on houses between £121,725 and £136,317 on an 80/20 with the Co-Op giving us a mortgage of £97,380... They said the mortgages on offer were fixed rate 3, 5 or 10 years at 5.99%... Which one is best? And should I go for 25 or 30 years?

tek-monkey

Eh? Did they actually go through your outgoings etc. to give you that range? My advisor just said find a house and try an application! I'd much rather have a concrete figure to work to, so I know where I stand.

EDIT: Oh, and I'd prob go for the 25 years. Doesn't seem too much more, and I'd be mortgage free 5 years earlier. Saying that, the mortgage will feel a lot less at the end than it does at the start!

superfran_uk

essikapessika wrote: »

Hi, hoping to get some help! I am in the process of a purchasing a property using the MyChoice homebuy scheme on my own. Its a short chain with me, the vendors and the person at the top who (mid-process changed her mind from going into rented) is now buying a new build. Originally I was meant to exhange last week with a view to complete end of this week but the woman at the top of the chain is refusing to complete until her property is built (even though she has relatives to stay with), however, my solicitor has informed the vendors that I run the risk of losing funding if i do not complete soon. This has scared (me!) but also the vendors I am buying off. The vendors estate agent rang today, initally to inform about further delays (i.e. no set completion date on new build) but he also queried the likelihood of getting an extension on funding he did this subtly... I'm so wary of estate agents that I'm wondering if he is doing this to be sneaky so he can tell the vendors that it was a scare tactic, I don't think it is I'm so confused and worried the house will fall through. Just wondering if anyone has experienced anything like this on the scheme or from estate agents? Really don't want to lose the sale, but am so worried x

Sorry hon, wrong thread. The two schemes are actually very different - I doubt anyone here could give you too much info about MyChoice HomeBuy. I applied and got to the finding a property stage but then funding ran out!

krisswilliams

tek-monkey wrote: »

Eh? Did they actually go through your outgoings etc. to give you that range? My advisor just said find a house and try an application! I'd much rather have a concrete figure to work to, so I know where I stand.

EDIT: Oh, and I'd prob go for the 25 years. Doesn't seem too much more, and I'd be mortgage free 5 years earlier. Saying that, the mortgage will feel a lot less at the end than it does at the start!

Yeah they went through my outgoings, incoming financials, savings etc and came to that amount. I did want to buy at around £110,000 or so but with the wages that myself and partner are on they feel anything lower than a minimum mortgage of £97,380 we would not need ownhomes help...

Give ownhome a call and with your ref number from the letter and tell them what you need to know. You need to know what they can offer so you can put an offer in dont you... Have you spoken to co-op mortgage people yet?

Just arranged 3 viewings for tonight and tomoz... Want to put an offer in right away as funding is running out quicktime!!!

tek-monkey

It was the co-op who said to find a place before applying! Hmm, maybe I should get back onto them...

krisswilliams

Deffo... Let us know how you get on...

I will update as of when also...

ladybird3

Tek monkey the reason that you dont do a full application is that mortgage applications are property specific. That is, your mortgage application and eventually mortgage offer will be based on the property you have found and the offer you have put, plus the valuation and survey etc.
When you spoke to co-op they should have given you an agreement in principle therfeore giving you a guide of what the co-op would be willing to lend to you when you put your formal application in once you've had an offer accepted on a property. Obviously they cant do you a formal application and offer before you've found a house because who is to know how much the property is going to cost, does that make sense or am I confusing you?!

As long as you have been totally honest with the bank as to regards your income and financial commitments, and you have a clean credit record then there is no reason why you shouldnt be able to borrow what the bank have agreed in principle. What I would say though is that the banks are being very strict at the moment plus times are tough! It would be prudent almost to work out what you could afford in total based on 3 or 3.5x your income rather than the 4.5x the co-op usually say you can have as then it may prevent some dissapointment. When I went through my mortgage in principle I was absolutely upfront with the bank about my income and outgoings etc, I told them about my loan but had no other debts or student debts owing and a clean credit record, in principle they said they would lend me £114k so off I trotted to look for a property of £190k maximum. In the end I had an offer accpeted for £174,950 so thought I would be fine given that I would be borrowing less than they'd agreed in principle. However my mortgage was reffered on the formal application and they came back saying I could only borrow 87k which is nearer 3.5x my income rather than 4.5, I was therefore left with a shortfall of £hell of a lot of cash between the mortgage and the P4P %, I was lucky in that my family decided to help out with a deposit to cover the shortfall but obviously this is not a common situation I dont think

It is all a bit swings and roundabouts really with a bit of a gambling element involved-nothing is certain until completion!

nicleys

Hello

I'm the childminder who was initially turned down (coz of running a business from home). Got this decision overturned

So we're accepted on scheme - made offer on house, only for co-op to come back with a decline (after going to underwriting) as the feel we can't afford mortgage [never mind we're paying same value in rent].

Contacted P4P first thing this morning to update husband's outgoings figure - to see if our minimum mortgage amount could be decreased.... Only to find out plug is pulled completely :eek:. Implication was that absolutely no more funding was happening for south east.

Does anyone else have any further info... We have acceptance letter from P4P - Do we try and persuade Co-op to give us mortgate... Will our acceptance letter still stand? Or is that it = no more...? Feeling absolutely gutted [again]... Any help / advice appreciated.

Lady at P4P sounded truely upset at letting us down - plus the fact they're all out of jobs shortly...

Nickyx

tek-monkey

ladybird3 wrote: »

Tek monkey the reason that you dont do a full application is that mortgage applications are property specific. That is, your mortgage application and eventually mortgage offer will be based on the property you have found and the offer you have put, plus the valuation and survey etc.
When you spoke to co-op they should have given you an agreement in principle therfeore giving you a guide of what the co-op would be willing to lend to you when you put your formal application in once you've had an offer accepted on a property. Obviously they cant do you a formal application and offer before you've found a house because who is to know how much the property is going to cost, does that make sense or am I confusing you?!

As long as you have been totally honest with the bank as to regards your income and financial commitments, and you have a clean credit record then there is no reason why you shouldnt be able to borrow what the bank have agreed in principle. What I would say though is that the banks are being very strict at the moment plus times are tough! It would be prudent almost to work out what you could afford in total based on 3 or 3.5x your income rather than the 4.5x the co-op usually say you can have as then it may prevent some dissapointment. When I went through my mortgage in principle I was absolutely upfront with the bank about my income and outgoings etc, I told them about my loan but had no other debts or student debts owing and a clean credit record, in principle they said they would lend me £114k so off I trotted to look for a property of £190k maximum. In the end I had an offer accpeted for £174,950 so thought I would be fine given that I would be borrowing less than they'd agreed in principle. However my mortgage was reffered on the formal application and they came back saying I could only borrow 87k which is nearer 3.5x my income rather than 4.5, I was therefore left with a shortfall of £hell of a lot of cash between the mortgage and the P4P %, I was lucky in that my family decided to help out with a deposit to cover the shortfall but obviously this is not a common situation I dont think

It is all a bit swings and roundabouts really with a bit of a gambling element involved-nothing is certain until completion!

Thanks for that. Just been on the phone to my bro, and I have received a mortgage agreement in principal today from the co-op. Thing is, they didn't ask about my actual outgoings! That was agreed at just under 4x my salary, but now I'm thinking I'm aiming too high! All I can really do is view this place tonight, and if I like it make an offer - and just hope that unlike you they are closer to the mark with their estimate.

Steven.Morris7

nicleys wrote: »

Hello

I'm the childminder who was initially turned down (coz of running a business from home). Got this decision overturned

So we're accepted on scheme - made offer on house, only for co-op to come back with a decline (after going to underwriting) as the feel we can't afford mortgage [never mind we're paying same value in rent].

Contacted P4P first thing this morning to update husband's outgoings figure - to see if our minimum mortgage amount could be decreased.... Only to find out plug is pulled completely :eek:. Implication was that absolutely no more funding was happening for south east.

Does anyone else have any further info... We have acceptance letter from P4P - Do we try and persuade Co-op to give us mortgate... Will our acceptance letter still stand? Or is that it = no more...? Feeling absolutely gutted [again]... Any help / advice appreciated.

Lady at P4P sounded truely upset at letting us down - plus the fact they're all out of jobs shortly...

Nickyx

Hi,

I think you are only secured the funding once the co-op tell p4p that you have had a offer accepted on a house & require X from them..

I'm also under the impression that unfortunately the scheme will be over once the current allocations get done.

But! They did say to me that if people don't take up the allocation, their funds get dropped back into the pot? But i'm not sure how common that is!

Sorry to hear about it all... I've had the final offer from the Co-Op through and now waiting for p4p to send me the final bit of documentation....

Steve