My Choice Homebuy

sugarpants_2

We are like you daughter and son i law. I think homebuy is a good way of getting on the propert yladder for young people. I wish the house prices in the SE were £120k like in he 80s but sadly they are not:rolleyes: We are gonna apply for homebuy laer this year once we have cleared all our debts. How did they apply?

HAZIEC wrote: »

our daughter & SIL are first time buyers, think they saw the information on a website www.firstrungnow.com also the cooperative bank do a scheme called own home. www.ownhome.co.uk which you and jonbjuk might find good. Good luck!

jonbjuk

Find your local homebuy agent on the link below and download or fill in an online application.

http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_073696

Chris2685

Well, I tried to warn you all off it

Hope it works out better for you than it did for any of the other people who have tried it... I have been posting on this board for a good few months now and not seen a single person who has had a good time with this scheme..

geoffky

do a search on here about these scams/schemes and you will find all about them....then run a mile for your wealth's sake....

ad9898_3

Chris2685 wrote: »

Well, I tried to warn you all off it

You just can't help some folk Chris, most of the people that go down this route will end up in very difficult financial positions as the years roll by, still what can you do. If banks won't lend the 'full value:rolleyes:' of a property, doesn't that set alarm bells ringing, that perhaps the property isn't worth it ??

haziec

MissB wrote: »

I was seriously considering this until something in my last call to them rang huge alarm bells:

The 50% share that you dont own is recalculated to 'keep in line with the current housing market'. This means that it fluctuates uncontrollably.

If we start to have another housing boom, or they just decide that the area's house prices are improving, then this share will go up unpredictably and could cause serious problems.

I can't cope with any variance in my outgoings as my money is too tight, so it's a definite no to me. I prefer to rent where my rent is fixed and if I had a mortgage I would have a fixed rate one so I knew exactly what was going on every month - for a fixed time at least.

If I fixed the mortgage on my share there is no guarantee the rented share wouldnt spiral out of my reach - and quickly.

That scared me.
It may be something they should consider carefully.

B
x x x

Hi Miss B, thats not what they were told, they said that IF they want to make a repayment, then its recalculated first by an independent valuation, then whatever you are paying off is a % IYSWIM?

They charge you on the amount they lend eg if 50% is 90k then its calculated on that over the year and divided by 12, how would they be able to change it month to month following the rise and fall of the house market? this would mean an independent valuation once a month which would not be economically viable.

When you sell, again, the calculation is made, IF the value of the property has increased you owe them a larger share but same if decreased then their amount is smaller.
I think they have not made it clear to you. Why not call and clarify it? Or perhaps someone on here who is already in the scheme can?

haziec

Chris2685 wrote: »

Well, I tried to warn you all off it

Hope it works out better for you than it did for any of the other people who have tried it... I have been posting on this board for a good few months now and not seen a single person who has had a good time with this scheme..

Thanks, I have read threads on here about people who have been let down with the funding running out at the last minute which is not acceptable. They were posted last year, so they will ask about that at the interview.
If you can point me in the direction of the threads of people who have bought with this scheme and had problems I would be most grateful.

haziec

ad9898 wrote: »

You just can't help some folk Chris, most of the people that go down this route will end up in very difficult financial positions as the years roll by, still what can you do. If banks won't lend the 'full value:rolleyes:' of a property, doesn't that set alarm bells ringing, that perhaps the property isn't worth it ??

It would be helpful (and i'm not being sarcastic) if you could let us know what sort of difficult financial positions you envisage on this scheme in years to come?
Thats the reason why I posted to find out what the pitfalls were and it would be very helpful to know what people mean when they are saying to avoid them.

Banks are just not lending full stop. Maybe all the greedy buy-to-let boomers have ruined it for the low paid first time buyers.

The "dead money" rental path is just as bad, I know its not a debt but our older son and DIL have had some horrendous problems with landlords.

If they don't do this scheme, what else is there for them apart from renting??

schueys_girl

Hi haziec,

My fiance and me are in the same situation as your daughter and Son in law. My fiance is on an apprenticship scheme, so makes poor money. We cannot afford a mortgage yet either, and have looked at scheems such as the one your kids are looking at. However, it does seem "dodgy" although I cannot quite put to words why!

What is putting us off at the moment is the state of the economy, and that buying right now is probably not a good idea. House prices will fall more yet, and perhaps in order to kick start the market, some more schemes for first time buyers on lower wages will happen. But also it is worth knowing that property is far too expensive, people on decent wages cannot afford them, so it must fall more.

The only thing we are doing is saving very very hard, so we have a big deposit, and then can look at whats going on in a years time. We are not rushing, and are not seeing renting as "dead money" as this is just a negative perspective which can put a shadow on things - we see it as at least we are together, enjoying life together, and when the housing market sorts itself out we will see what the market offers them for schemes.

It is best not to rush at this point in time, getting tied into a mortgage right now probably isnt a good idea with the current climate and house prices dropping. can they not hang on for a little longer renting? If all they can get on the homebuy scheme is a 2 bed...are they thinking of kids in the future??

Myself and my partner are hoping that we may if we save hard be able to afford a 3 bed in the future so we wont have to move again so soon when we want kids...

Good luck there are lots in the situation!

haziec

schueys_girl wrote: »

Hi haziec,

My fiance and me are in the same situation as your daughter and Son in law. My fiance is on an apprenticship scheme, so makes poor money. We cannot afford a mortgage yet either, and have looked at scheems such as the one your kids are looking at. However, it does seem "dodgy" although I cannot quite put to words why!

What is putting us off at the moment is the state of the economy, and that buying right now is probably not a good idea. House prices will fall more yet, and perhaps in order to kick start the market, some more schemes for first time buyers on lower wages will happen. But also it is worth knowing that property is far too expensive, people on decent wages cannot afford them, so it must fall more.

The only thing we are doing is saving very very hard, so we have a big deposit, and then can look at whats going on in a years time. We are not rushing, and are not seeing renting as "dead money" as this is just a negative perspective which can put a shadow on things - we see it as at least we are together, enjoying life together, and when the housing market sorts itself out we will see what the market offers them for schemes.

It is best not to rush at this point in time, getting tied into a mortgage right now probably isnt a good idea with the current climate and house prices dropping. can they not hang on for a little longer renting? If all they can get on the homebuy scheme is a 2 bed...are they thinking of kids in the future??

Myself and my partner are hoping that we may if we save hard be able to afford a 3 bed in the future so we wont have to move again so soon when we want kids...

Good luck there are lots in the situation!

good luck to both of you....they are saving hard as well, problem is IF they moved out of here and rented, they could save nothing! So they are in a catch 22 situation.
On their wages they don't think they will ever make the multiples in salary required to meet a house in this area, unless theres a 50% drop.
Everyones expectations and dreams are different and they have said at least if they go to the interview and find out about the scheme, then they can say they tried.:A