Opinions on this...

RobertoMoir

jamief wrote: »

Or maybe a case of the sanctimonious bunch on here not understanding the property market north of Hadrians wall, and then trying to cover their tracks by waffling?

I thought you posted in reply to me earlier to say you were leaving. Door's over there, don't let it hit you on the way out.

mailmannz

Gee some of you need to get out and about in the fresh air aye.

All this geezer did was to come and ask for an opinion on a scheme that had caught his eye and what he's ended up getting is a good old flame fest. Dont ya just love the intraweb!

If you dont like shared equity schemes, so be it. However, given how things are going at the moment Id say that very soon shared equity/ownership will be the only way FTBers will get on to the ladder.

Mailman

neverdespairgirl

ceepee1 wrote: »

Im very familiar with this scheme. This is not shared ownership (where the other party owns part of your property) This is shared equity which is different. You do own 100% of the property but have an interest free loan on 25% for up to 10 years.

is not a shared ownership scheme you own 100% of your home from day one (a second mortgage will be taken over your home to secure your loan)

Sounds to me as if, in effect, you own 0% of the place, with a 25% equity loan and a 75% mortgage.

mailmannz

How is that any different from someone with a 100 or 125% mortgage?

Mailman

poppysarah

mailmannz wrote: »

How is that any different from someone with a 100 or 125% mortgage?

Mailman

It's insane whatever it is.

But the OP has got upset because we've not all congratulated them on their choice of action.

kennyboy66_2

mailmannz wrote: »

How is that any different from someone with a 100 or 125% mortgage?

Mailman

If someone came on asking about how they could get a 125% or 100% mortgage, they would probably get the same advice that it was almost certainly a bad idea.

Shared ownership schemes or "free" finance schemes always seem most popular / marketed at the fag end of an unsustainable boom.

Surely any FTB would rather prices fall another 20% (on top of the 16% from peak) already, to give themselves a chance of buying.

I am not one of the 'doomsters' but if I was looking to buy at the moment I would think about the following criteria

1) House prices seem certain to fall further in most areas
2) Is the property a flat.
3) Is it shared ownership
4) Is the property a new build
5) Is there a "free finance deal" inflating the purchase price.

I can just about understand someone buying if only one of these criteria is met provided they were getting a good deal.

If you are buying and the property falls into 3 of these categories, I would have to question anyones sanity.

hethmar

This chap came on for advice from people he expected were more mature/experienced.

Why do some people have to be so sarcastic and aggressive? It makes no odds to anyone else whether this couple buy a place or not - you can state your opinions without the terrible sarcasm.

silvercar

TBH I gave some opinions without being rude or sarcastic and he just ignored them and said that I don't understand that in Scotland you have to pay more than the builder is asking.

When I suggested he looked at prices sold in the area, again he said you have to pay over the odds for new builds in Scotland so I'm talking rubbish.

Sometimes all people want is confirmation that they are doing the right thing and refuse to listen to any other viewpoint.

hethmar

Appreciate that silvercar, I hadnt read all the thread and yes, I guess he has asked for some of it, but some of the replies were downright rude and thats not necessary.

Catti

One thought that occurs to me:

House bought for £265K with mortgage of 198,750.00. MiWay entitled to 25% of sale proceeds.

Prices continue to fall as anticipated. In 3 years or so - can only sell for - say - £240K. MiWay want £60,000.00. Mortgage in early stages so not likely to have changed much - but only £180,000.00 left in equity! First mortgage gets paid first so that leaves only around £40K for MiWay.

How will you pay the difference?