My Choice Homebuy

llh189

This is my third attempt to buy a house after two vendors have pulled out after my survey has been done.

I have now been accepted on to the my choice home buy scheme which is run by my local housing association.

I have had a offer accepted on a two bed house, I have found out today that my vendor also trying to use the same scheme as me, I am a FTB but he owns his two bed house with his wife and they share it with there young daughter.

Given he isn't a key worker or a FTB I enquired how they meet the criteria of the scheme to be told that they are using social reasons i.e they have grown out of their current property as it is a relatively small two bed. They are also planning at some point to have another baby.

I had a phone call today from my estate agent telling me that they have had an offer accepted on a house, so the chain can get going!

I know the house that they are planning to buy and it is only a two bed and I can't see how they will get help from the local housing association on a social basis. I agree with my estate agent that the plot is bigger and there is room to build an extension but it is still just a two bed.

Having lost two sales now and being out of pocket I rang the HA and pretended that I was in the boat of my vendor and I was told that I probably didn't fit the criteria. I obviously don't know all of the personal details about my vendor. But without the help of the HA they can't afford to move, so if they don't get the help with the funding they can't move.

I don't want to lose anymore more money, and I am desperate to get out of rented place, I have an option on another house, should I pull out now or give my vendor the benefit of the doubt and hope that he passes the schemes criteria. Although we probably won't know this for 3 / 4 weeks.

I have expressed my concerns to both my estate agents and my FA (who works in my estate agents doing mine and my vendors mortgage) but both of them say that I am worrying too much and should just chill.

I am so keen to move before christmas and have formed quite a good relationship with both my FA and the local estate agents and oddly I feel bad about letting either one of them down if I pull out - should I just ride out the next couple of weeks and hope that they don't turned down by the HA and worry about it only when it happens.

Any thoughts?

Thanks

brit1234

Very brave going for a Home buy property. As a first time buyer and a key worker I would stay well away. I would advise every first time buyer not to go for this scheme, it is just designed to keep prices high.

All other prices are falling fast.

llh189

Brit1234, thanks for your reply.

I feel ok about joining the scheme as I get to buy from the open market as opposed to a small number of joint equity places.

The scheme gives you the deposit needed to get a mortgage and all you pay is 1.75% interest on the money borrowed, you only pay back the capital once you sell the property.

But thanks very much for your reply!

Northants_Simon

Read my posts on Homebuy to see all the problems with it. In theory it is great, but they just mess you around.

Chris2685

I don't think the people you are planning to buy from will get approved to buy another 2 bed house. They go solely by bedroom count and have a 'computer says no' attitude.

I would also really suggest putting off buying a home through the scheme. They messed me about something chronic, and given the state of the housing market I'm glad they did, and that I never bought!