Ownhome scheme suspended - any news?

funschine

We were told that we were assessed 2.9 times our joint income which would have come to 99k. They assessed us downwards to 96k which means that we have to have a mortgage for 96k. This was to give us more leeway on how much we can offer for a house. The rest is put in by the housing association. We were assessed for a two bed which is limited at 125k. That means for the HA to have their minimum 20% share, the house must be bought for between 120 and 125k. The way it worked out for us, with a little bit of saving we were better off buying for the full 125k and putting some of our own money into it so that we can get a 75% mortgage. This means that the interest rate is significantly lower. £96k being approx. 77.3% Loan to value which means banks etc rate us in the 80% rate band, so us scraping £2250 together meant the rest £93750 as a mortgage is at the 75% rate from the bank which for us with halifax is a difference of just over £100 per month in our payments.
We applied through Grampain housing. They are extrememly approachable. I would say apply even if you think your income is too high. You have nothing to loose. We heard back within 3 weeks and did not expect to be approved. They do look at each case individually and they really do what they can to help. If they think you qualify for any other schemes, they will let you know. They offered us a new build in another town through a different scheme because they saw we quailified and all we had to do was apply but we decided against taking it because it was too far away.
Best of luck.

scotsgirl_3

Thanks Funcschine - very much appreciated. By the sounds of it your income isn't far off ours so fingers crossed.

geoffky

funschine wrote: »

I am also on the LIFT scheme. The way it was explained to us is, the housing association pays X per cent which essentially is the deposit. They will always own that per centage of the current market value. When we sell and we make a profit, the housing association get their X per cent back which means they also make a profit. If we make a loss they also make a loss. We are free to sell the property on the open market again. We also have the choice to buy that per centage back of the housing association

This scheme is about to make my dreams come true.:T:T:T

WE WILL HELP YOU OUT IN THE NEXT FEW YEARS WHEN THE PENNY FINALLY DROPS....PROFIT ....HA HA....IT WILL BE YEARS BEFORE YOU SEE ANY PROFIT...SOMETIMES DREAMS END UP NOT WHAT THEY SEEMED....when you try and sell for xxx amount and they say no..what will you do?.

funschine

geoffky wrote: »

WE WILL HELP YOU OUT IN THE NEXT FEW YEARS WHEN THE PENNY FINALLY DROPS....PROFIT ....HA HA....IT WILL BE YEARS BEFORE YOU SEE ANY PROFIT...SOMETIMES DREAMS END UP NOT WHAT THEY SEEMED....when you try and sell for xxx amount and they say no..what will you do?.

I am trying to buy a home, not make a quick profit. Maybe you should speak to the housing association before making such assumptions. If it wasn't for this scheme, I would be paying someone else's mortgage by renting for years to come. Not to mention that I can also buy that percentage back of the housing association and that percentage will be based on the current market value and an independent valuator will be used.

funschine

scotsgirl wrote: »

Thanks Funcschine - very much appreciated. By the sounds of it your income isn't far off ours so fingers crossed.

Scots girl, I wish you the very best of luck. It is not easy finding a place but the right house is out there for you. Just when I thought it would never happen, we found the perfect place and our offer was accepted. Remember, just because a place has a fixed price, doesn't mean you have to pay that. The house must be valued at the amount you offer. If you have any questions, I am more than happy to tell you about my experience so far. Just send me a private message.

neverdespairgirl

funschine wrote: »

If it wasn't for this scheme, I would be paying someone else's mortgage by renting for years to come. Not to mention that I can also buy that percentage back of the housing association and that percentage will be based on the current market value and an independent valuator will be used.

<groan>

I do wish people would give this "paying someone else's mortgage" and "renting is dead money" malarkey a rest. On a money-saving board, this kind of financial illiteracy is boring.

p1an0player

neverdespairgirl wrote: »

<groan>
I do wish people would give this "paying someone else's mortgage" and "renting is dead money" malarkey a rest. On a money-saving board, this kind of financial illiteracy is boring.

Not that I disagree, but it might be helpful if you explain why it's "illiterate"

neverdespairgirl

(1) Because paying for a roof over your head isn't "dead money" by any means. It's payment for a frankly rather useful service;

(2) In my neck of the woods (and many others) rents are actually lower than the mortgage (interest-only) payments would be on the same place if you bought now, so it's hardly throwing money away;

(3) There is a real risk of getting stuck in negative equity or being unable to sell. Look at the number of posts on this board in the last few weeks where people have bought with a partner, split up, and can't sell for the value of the mortgage;

(4) Even if rents are higher than mortgage payments, you need to factor in other costs, such as service charges, maintance, wear and tear, etc;

(5) Property prices are falling in every region. If you save £100 a month paying a mortgage on a place, instead of renting, even taking into account (4) above, and your house or flat is dropping in value at the rate of £500 a month or more, you aren't doing well.

wymondham

neverdespairgirl wrote: »

(1) Because paying for a roof over your head isn't "dead money" by any means. It's payment for a frankly rather useful service;

(2) In my neck of the woods (and many others) rents are actually lower than the mortgage (interest-only) payments would be on the same place if you bought now, so it's hardly throwing money away;

(3) There is a real risk of getting stuck in negative equity or being unable to sell. Look at the number of posts on this board in the last few weeks where people have bought with a partner, split up, and can't sell for the value of the mortgage;

(4) Even if rents are higher than mortgage payments, you need to factor in other costs, such as service charges, maintance, wear and tear, etc;

(5) Property prices are falling in every region. If you save £100 a month paying a mortgage on a place, instead of renting, even taking into account (4) above, and your house or flat is dropping in value at the rate of £500 a month or more, you aren't doing well.

Top Post NDG!