Ownhome and homebuy schemes

ashbourne

Can't seem to find a great deal of information on the Homebuy scheme but can anyone tell me how they differ?

Also what are the pro and cons of Ownhome?

Would i still own the property outright?

Would i be tied into a mortgage with the Co-op that would make it not worthwhile over time?

Would it be a better option than renting at the moment or hold on bit?

Any other good alternatives?

Some questions there that if anyone can help with i would be very grateful

tootiefrooties

If you have a look at the homebuy and ownhome websites, they have most of the info you want. failing that, type it into the MSE forum search box to find 10000s of threads which answer your questions - they get asked at least once a day

tootiefrooties

But, whilst I'm here...

"Can't seem to find a great deal of information on the Homebuy scheme but can anyone tell me how they differ?"
Homebuy is with housing association: you can use (almost) any mortgage and you have to pay rent on the share you don't own. Ownhome is with co-op mortgages only, and no rent to pay in first 5 years.

"Also what are the pro and cons of Ownhome?"
Cheap for the first 5 years as only a small mortgage to pay. Cons: limited funds per area (as with other homebuying schemes) and other part-ownership downsides, e.g. selling up.

"Would i still own the property outright?"
It is considered yours in the same way someone with a 100% mortgage owns their house - your funds are just borrowed from different places. But you don't own it "outright" in that when you sell, you pay back the revalued share to whoever provided the loan, so you don't get full profit of resale value if there is any.

"Would i be tied into a mortgage with the Co-op that would make it not worthwhile over time?"
Don't know, ask the co-op. Most of their rates are quite good but i doubt you are allowed to switch to another bank if after fixed rate or whatever if you're using ownhome.

Would it be a better option than renting at the moment or hold on bit?
Everyone on this board will tell you to wait. I would say, totally depends on your circumstances and only you can work that out. Although general consensus is that prices are falling rapidly, and any amount of waiting will save you a bit of cash.

Any other good alternatives?
Renting or finding a way to get a normal mortgage.

HTH!

CHARDONNAY_3

I would avoid these schemes if you want to keep your sanity - there is a thread on here about the cons of Mychoice Homebuy which is worth a read to find out other people's thoughts/experiences.

They really are just a way of keeping prices artificially high, so you would be best of renting for a while then buying a home of your own without these hair-brained schemes!