Own Home Scheme Pros and Cons

superfran_uk

One question I want to know the answer to - at the end of your fixed term, is there anything you can do? I assume you can't just move to another provider but are you basically stuck on their tracker mortgage for the remiander of the 25 years?! This doesn't seem right...

Miss_26

At the end of the fixed term be it 3yr or 5yr, depending on which one I choose you can then change lenders. You do get a £140 fee for that. You can then choose another fixed term for the next however many years. I plan on staying on a fixed rate regardless that way I know what i'll be paying.

zoomy

Miss_26 wrote: »

I had my mortgage referred last night. I have no debts, no credit cars or never have done. The only outgoing I have is my car which is on a similar thing to HP. I started that over a year ago and have kept up with payments. Im only on 18k so this could be the reason why. What is the liklihood that it will be a definate no? I just want to know how long its going to be as im in the West Midlands and they are running out of funds. :-(

Mine was referred - took 3 days - fingers crossed for you

Miss_26

Zoomy (sorry not sure how to do quotes) - If you dont mind me asking why was yours referred and did you get a mortgage at the amount you wanted in the end?

ladybird3

Mine was referred too and it took about 4 days for them to get back to me,
I think what they try and do is explore all possible options that would allow them to lend to you, when I spoke to the co-op they said it was unusual to get a flat 'no' but they may come back with an option of taking an extended term or possibly decreased lending amount.

At the moment they say that around 50% of all applications get referred so you're not out of the norm!
In my case It was decided they would only lend me 3.5x my income instead of 4.5x and that I had to take out the mortgage for 35 yrs intead of 25. Luckily this wasnt an issue for me and if anything it means my payments have turned out to be quite small so i'm going to be able to save up chunks to pay off the equity

zoomy

I was told that most of the Ownhome ones are referred ...

I have a good clean credit history and no loans (other than student one!) but the problem was that I have a fully expensed company car and private healthcare (that I pay tax on) together with student loan and pension (both deducted at source) which mean that although my salary is ~25K my monthly take home is ~ £1,250 so my affordability was low

I was origionally told I could borrow upto £111k, I asked for £90k and have finally ended up being offered £74,900 ... fortunately family are in a position to help me with the shortfall and p4p reduced their minimum mortgage ammount in line with the co-op's offer...

Miss_26

Im worried now. I take home just under £1200 a month but I have my car that I pay £200 on. I have nothing else that comes out of my account. I have no credit cards, no student loans, no pension absolutely nothing else. I did the mortgage application provisionally on 110k with a mortgage of 66k however I have decided to go for the cheaper property which is 105k and a mortgage of 63k. After reading what you said I bet they dont offer me that and therefore that will be that as this is the cheapest property I have found where I live unless I want to live in a garage!! What do you think my chances are?

zoomy

You may well be fine - the case worker I was allocated at a later date was surprised that I had been offered so little but given the funding situation I didn't want to risk going back and querying it!

krisswilliams

Mine was referred as well this afternoon... Am keeping my fingers crossed as west midlands fubnding is running out... Hopefully wont take long!!!

Steven.Morris7

ladybird3 wrote: »

been waiting 2 weeks. . . . . was told would be 4 too!

We are week 1 out of 4 down....