Own Home Scheme Pros and Cons

ddd_wke

any news on what date P4P are up to now with final loan confirmation (post mortgage offer)...?
Thanks!

Steven.Morris7

ddd_wke wrote: »

any news on what date P4P are up to now with final loan confirmation (post mortgage offer)...?
Thanks!

I really want to call them as i'm in week 3... But just trying to wait...

hertsman2009

Hi all,

Have been watching this group since early May and it has a been a great source of knowledge for this scheme seeing as written literature with regard to the process is none existent. I am in the South East region, specifically Hertfordshire.

Here's my timeline:

Initial call to Ownhome: 5th of May.

First letter to arrange interview: 23rd of July (about 12 weeks).

Eligibility interview: 6th of August (about 14 weeks)
My basic salary is £35k. I have no debt and an excellent credit rating. Ownhome allowed me a 2 bed property with a max value of £162k and the Ownhome loan was to be 20% of this.
A litte tip: During my eligibility interview i gave my OTE as £45k (i get commission every 3 months) , this immediately made me ineligible, I then had to send in 3 wageslips to show prove that my basic was lower.

Second interview (to prove salary): 11th of August.
It took 2 or 3 days to even open my email and look at my wageslips - they are very busy! I passed the interview eventually!

First Call to Co-Op: 11th of August.
Yep, straight after i passed the interview. Gave them some details including my Ownhomer Ref and got an illustration. I had been looking at a few properties beforehand and had made offers based on the figure i had been given on my first Interview phonecall! After a chat with the Co-Op guy, i realised that their process allowed you to change the property on the address with just a phone call (this is common as offers can fall through). So, I gave him an address i had made an offer on and then asked him to make an actual application - it was approved immediately.

Offer accepted: 13th of August.
I get an offer accepted on a property that i liked more than the one i told the Co-Op about!

Ownhome Funding Allocation letter: 14th of August.
I expected this to be weeks away or not to happen at all. The letter from Ownhome said the loan was for the property i had told the Co-Op about. I rang the Co-Op and told them the original property had fallen through and gave them the address of the new property (same price)- they were more than happy to do this. This filtered through to Ownhome. It seems the funding is allocated and then tied to a Reference number rather than the property. Mortgage papers also arrived, Co-Op advised me to sign them even though the address details were incorrect - as they could make the amendments on the computer. Sent papers off that day.

Currently, my mortgage papers are being processed by the Co-Op and I have appointed a solicitor. By the way, i found Optima to be expensive - about £1200 (on a new build of £162k with HIP). I am waiting for the property to be valued, if that goes well it takes 4 weeks to actually get the Ownhome funding released.

It's a long winded message by main points are:

- Beware of over-egging your salary, there is an upper limit.
- There is still funding in the South East, and Herts is included in this area.
- If you have some offers that are being considered and you're sure that one of them could be accepted, go ahead and put in a mortgage application with the Co-Op -they don't mind changing the address details. At least you'll get your funding allocated for 3 months, this'll give you a bit of breathing room.

Some people may disagree with my last point, but it is all above board and just takes advantage of features of the process. :A

tek-monkey

hertsman2009 wrote: »

By the way, i found Optima to be expensive - about £1200 (on a new build of £162k with HIP). I am waiting for the property to be valued, if that goes well it takes 4 weeks to actually get the Ownhome funding released.

Thats a fair bit! My local solicitor charged £865 inc vat with all fees, which I thought was high. Any reason Optima cost more? My house is £132.5k

hertsman2009

I told Optima I was on the Ownhome scheme and was given a standard quote of £1100. I replied back and mentioned i was buying a new build - i got a reply stating that new build properties incur an additional £100 charge for "extra work" whatever that may be.

I got a quote from a local solicitor for £1000, they have a good relationship with the developer so i'm going to stick with them. It's only £200 cheaper, but every penny counts at the moment! I remember reading on here a few months ago that it was better to go with Optima because they knew the Ownhome process - i don't believe that to be entirely helpful. When you receive your Allocation Letter from Ownhome, they attach a set of instructions specifically for your solicitor. Even i could understand them so i don't think a solicitor would have a problem following them.

ozzyozzy

hertsman2009 wrote: »

Hi all,

Have been watching this group since early May and it has a been a great source of knowledge for this scheme seeing as written literature with regard to the process is none existent. I am in the South East region, specifically Hertfordshire.

Here's my timeline:

Initial call to Ownhome: 5th of May.

First letter to arrange interview: 23rd of July (about 12 weeks).

Eligibility interview: 6th of August (about 14 weeks)
My basic salary is £35k. I have no debt and an excellent credit rating. Ownhome allowed me a 2 bed property with a max value of £162k and the Ownhome loan was to be 20% of this.
A litte tip: During my eligibility interview i gave my OTE as £45k (i get commission every 3 months) , this immediately made me ineligible, I then had to send in 3 wageslips to show prove that my basic was lower.

Second interview (to prove salary): 11th of August.
It took 2 or 3 days to even open my email and look at my wageslips - they are very busy! I passed the interview eventually!

First Call to Co-Op: 11th of August.
Yep, straight after i passed the interview. Gave them some details including my Ownhomer Ref and got an illustration. I had been looking at a few properties beforehand and had made offers based on the figure i had been given on my first Interview phonecall! After a chat with the Co-Op guy, i realised that their process allowed you to change the property on the address with just a phone call (this is common as offers can fall through). So, I gave him an address i had made an offer on and then asked him to make an actual application - it was approved immediately.

Offer accepted: 13th of August.
I get an offer accepted on a property that i liked more than the one i told the Co-Op about!

Ownhome Funding Allocation letter: 14th of August.
I expected this to be weeks away or not to happen at all. The letter from Ownhome said the loan was for the property i had told the Co-Op about. I rang the Co-Op and told them the original property had fallen through and gave them the address of the new property (same price)- they were more than happy to do this. This filtered through to Ownhome. It seems the funding is allocated and then tied to a Reference number rather than the property. Mortgage papers also arrived, Co-Op advised me to sign them even though the address details were incorrect - as they could make the amendments on the computer. Sent papers off that day.

Currently, my mortgage papers are being processed by the Co-Op and I have appointed a solicitor. By the way, i found Optima to be expensive - about £1200 (on a new build of £162k with HIP). I am waiting for the property to be valued, if that goes well it takes 4 weeks to actually get the Ownhome funding released.

It's a long winded message by main points are:

- Beware of over-egging your salary, there is an upper limit.
- There is still funding in the South East, and Herts is included in this area.
- If you have some offers that are being considered and you're sure that one of them could be accepted, go ahead and put in a mortgage application with the Co-Op -they don't mind changing the address details. At least you'll get your funding allocated for 3 months, this'll give you a bit of breathing room.

Some people may disagree with my last point, but it is all above board and just takes advantage of features of the process. :A

I am not sure about the salary part you quote, you are allowed to earn up to £60k per annum, they may have disqualified your O/T for other reasons. One of them may have been that if that was included you certainly would not have been eligible for the scheme, bearing in mind they have told you the maximum value of the home you may buy was only £162k. In theory if co-op lent you 3.5x income - which is typical on this scheme - you would have been lent at least £150k, so you would only have needed an equity loan of only £12k - less than 20% - making you ineligible ! Maybe thats why they said that OR your O/T was not regular.........

But actually what i want to ask is: I am in the London area and I am thinking of buying in Hertfordshire, BUT i am worried when you say they only allowed you to go up to a maximum of £162K - Is this likely to be the limit in Herts ?? Because I personally may not want to buy in London, BUT would like to buy a home, 2 beds, in Herts for at least £250k. IS THIS LIKELY TO BE ACCEPTABLE BY OWNHOME FOR THE HERTS AREA ?

(I got my interview this Wednesday).

Ozzy

Steven.Morris7

Last Wednesday they where processing final offers between the 17th-20th July...

I was on the 24th July so i'm hoping that if they are getting through a days worth each day as the EA is calling me more frequently now and i don't feel as strong as we once did... The Vendors solicitor are pushing for the deal to be completed asap now, but i feel a bit helpless with not being in control....

ladybird3

ozzy it entirely depends on what the average house prices are in the area you want o buy in herts as that's what ownhome base their figures on, for example, I wanted to buy in Islington north london and as prices are very high there I was told the maximum I could spend on a 2 bed property (as a single applicant) was £300 and something k as that is the average for a 2 be property in this area.

I guess if the average is less than you were hoping to spend then maybe you can negotiate?

Steven when was your offer initially accepted by the vendor?

Steven.Morris7

ladybird3 wrote: »

ozzy it entirely depends on what the average house prices are in the area you want o buy in herts as that's what ownhome base their figures on, for example, I wanted to buy in Islington north london and as prices are very high there I was told the maximum I could spend on a 2 bed property (as a single applicant) was £300 and something k as that is the average for a 2 be property in this area.

I guess if the average is less than you were hoping to spend then maybe you can negotiate?

Steven when was your offer initially accepted by the vendor?

Around 25th June. So really the process has been under 2 months Long, which isn't that bad is it?

tek-monkey

I was told 212k for a 3 bed, round here thats a fair bit! Paying 132.5k for a fairly nice one I found.