Own Home Scheme Pros and Cons

zoomy

poppycat1 wrote: »

Hi, I'm new to this post, but has been interesting reading. I had my inteview with P4P and have been told I need to have a minimum mortgage of 134,000. However, that is more than I wanted my monthly outgoings to be and could easily find a property with a 30% deposite with a minimum mortgage of 100,000. Does anyone know why you have to have a minimum, or it's possible to lower this? The person I spoke to on the phone wasn't helpful.
Thanks.

Given your example above if your minimum mortgage ammount is 134K then you should be able in theory to borrow this much and you want to buy an 130k property then the view is that you do not need the scheme as you can afford to borrow the whole of the purchase price - I know it doesn't quite work like that as 100% mortgages are a thing of the past but I don't set the rules!

Edited to say - if you have high monthly outgoings the co-op do take these into account and may not offer you the full mortgage in which case P4P would accept the maximum mortgage the co-op will lend as the minimum mortgage ammount.

Presido

You cannot buy a nice house in some areas in London for £250k. The scheme is to allow people who do not have enough money to purchase a suitable property. You seemed to be under the impression that everyone who have gone though the OwnHome scheme would come here and tell you that they receive this much amount of funding.

One more thing: I am giving rare information to REAL PEOPLE. OwnHome has approved a number of properties with value of £300k and more in some areas in London. This is a FACT and NOT theory.

superfran_uk wrote: »

I think we are essentially arguing the same point - certainly if you had £45k and you wish to use this towards a deposit and you mention this, in 99% of areas, and for pretty much all 2/3 bed houses, it could mean that because of the figures involved you do make yourself ineligible.

We are here giving advice to real people in real situations, the theoretical stuff behind it is kind of irrelevant to most of us here.

We were eligible for a 190k home, 2 bed. No more. We had to take a minimum mortgage of 127k. If we had told them we wished to put a 45k deposit down then this would have meant we would have 145 left to pay on a mortgage. Even the minimum equity loan would be 38k, taking the amount on a mortgage down to 107- BELOW what Ownhome say you have to take.

I'd say outside London that being offered up to a £412,500 home is pretty unlikely to the point of just not going to happen, basically unless you live in knightsbridge and have a massive family and a huge income to match (who else could possibly take on a mortgage of 250k?! Certainly not a single person or a couple earning under 60k, as you have to on this scheme!) there's just no way that's going to be a reality. Certainly the most I've heard about on these boards is in the area of 250k which is enough to buy you a nice house almost anywhere (and I live in the south east - even here).

ladybird3

Im getting a bit confused reading all this now-

Surely what this comes down to at the end of the day is that it doesnt actually matter what P4P set your maximum to be-that means very little particulalry if you're buying in London or expensive areas
What matters is the mortgage amount from the co-op as this sets the presidence for what property you can get.

Am i missing something?!

Presido

YES! You will certainly be allowed to purchase the property based on the specific scenario you have raised.

The mathematics of the rule is this: 2 + X

Where X = 0 if you are single and wanted more than a One Bedroom

---

X = 0 if you are a couple with no children

---

X = 1 if you are a couple and you make it abundantly clear you do need an extra space due to very good reason and both names are in the mortgage application form. If only one name is in the Mortgage application X will revert to zero.

ozzyozzy wrote: »

Hi there, I am in the London area. I want to ask a question : As a single person I want to buy a 2 bed home in the London area. I want to go for something in the £250k region. Am I correct in saying that as long as I meet the equity stake limits - I want to go for 40% i.e. £100k AND my Salary Income multiples allow me to borrow say £150k, that I am allowed to go ahead and purchase a £250k property via the Ownhome scheme ?

I have assumed this should not be a problem if I meet these criteria.

Your answer would be appreciated....Ozzy

ozzyozzy

Presido wrote: »

YES! You will certainly be allowed to purchase the property based on the specific scenario you have raised.

The mathematics of the rule is this: 2 + X

Where X = 0 if you are single and wanted more than a One Bedroom

---

X = 0 if you are a couple with no children

---

X = 1 if you are a couple and you make it abundantly clear you do need an extra space due to very good reason and both names are in the mortgage application form. If only one name is in the Mortgage application X will revert to zero.

Thanks Presido, thats what I thought, I got my telephone interview next week, its been so long I am starting to forget all the Ownhome rules..!

ddd_wke

Hi, Question for all those nearing the end of the process:
On receiving your mortgage offer did you have to forward it to P4P or did that happen automatically?
Thanks!

ladybird3

automatically!

the co-op send out the offer to you, and P4P, and your solicitors so everyone has their own copy

poppycat1_2

poppycat1 wrote: »

Hi, I'm new to this post, but has been interesting reading. I had my inteview with P4P and have been told I need to have a minimum mortgage of 134,000. However, that is more than I wanted my monthly outgoings to be and could easily find a property with a 30% deposite with a minimum mortgage of 100,000. Does anyone know why you have to have a minimum, or it's possible to lower this? The person I spoke to on the phone wasn't helpful.
Thanks.

Thanks for the replies to above. I'm actually finding it really difficult to find a 2 bed property (which I've been told is the max b/rooms I can have) for the minimum mortgage price I've been given. It would be much easier to get a 3 bedroom, which would suit me anyway. Has anyone tried to up the bedroom limit and if so, were you successful?

rngeena

:Twe have exchanged today with completion on 28th of August. It has been such a stressfull process, but atleast we are getting nearer.

ladybird3

Congratulations!! you must be so excited!:T

I had a call from the solicitors today, they've said I should be able to exchange this time next week-fingers crossed! :j