KeyHomes East - Mychoice Homebuy scheme

spectre

professor_x wrote: »

We're still waiting for KHE to allocate funding to us (we've been waiting 8 weeks) and it looks like our house purchase will fall through as we cannot give any indication of timescales. Our main concern is that any offers we make on property will not be considered seriously by sellers, especially if they know we are going through this scheme with keyhomes east.

exactly its a complete waste of everyone's time.

Also its advertised as if you don't have a deposit you can use the equity loan as your deposit , This is soon to disappear at least with Nationwide it is , & now you will have to provide a minimum 5% deposit of your own cash along with the equity loan.

spectre

jondh98 wrote: »

Hi All,

Just thought I would add my views, we had an offer made on our property on 12 March 2009, and started to look for new a new property based on the original information given to us that everything would be in place in a couple of weeks, we even entered a contract race (paid survey fees etc and lost race...... bit of a gamble admittedly) based on this information, 6/7 weeks later our purchasers have still not had the letter saying that our property is okay and go ahead with the survey, my concern then arises about how long it takes from KHE getting the survey to saying yes you can proceed to purchase the property. I have today submitted this information to Watchdog and advise you all do the same. Maybe if they investigate this story about the great schemes to kickstart the housing market, we may all start to see results.... Glad I got that off my chest :-)

Great Idea , im going to do exactly the same,
You hear news in the budget that an extra 80m is going to be made available to these types of schemes yet they take an absolute eternity to complete due to all the red tape.

Maybe its the intention to steer prospective buyers away from secondhand properties and towards new builds where a longer wait could be sustained.

Matthays

Afternoon all

Following on from a previous post by another user, Nationwide no longer accept mortgages on MCHB without a 5% deposit ON YOUR SHARE.

There are still lenders who will do this scheme without any deposit so don't worry too much.

With regard to any update from Keyhomes it would appear that cases sent in early march have all been passed over for final allocation (if you haven't already been asked for further info that is). They are processing requests received towards the end of the month. These will then be passed for final approval with the rest which is also taking some time.

Cheers

Matt

half577

hi everyone,

Matt, our FA reserved a mortgage with nationwide about 2 months ago, do we now need to find a 5% deposit even though we reserved the mortgage?
thanks Gareth

spectre

half577 wrote: »

hi everyone,

Matt, our FA reserved a mortgage with nationwide about 2 months ago, do we now need to find a 5% deposit even though we reserved the mortgage?
thanks Gareth

Hi allthough im not 100% i would have thought once you complete the full application you would be liable to pay this 5% with Nationwide, as the reservation you talk about assuming you havnt payed the reservation fee would only be an agreement in principle AIP,

Matthays

Hi there

I have spoken to Nationwide about this point. There are several FA's who don't realise that Nationwide only accept shared equity applications on a paper based application.

If your FA did this online then it is highly likely that you will now have to conform to their current rules. I can't think of a situation in which he/she could have reserved your funds unless they submitted a full paper application (which they shouldn't really do until you've been allocated). If they've done this you will be ok, if not you will probably be looking for another Lender.

Thanks

Matt

Matthays

I have heard from several sources that KHE are out of funds. I have spoken with someone from KHE today who has confirmed that this is NOT the case.

They are still waiting to find out exactly how much funding they will have this time round. The situation is that they are just waiting for the funding to come in before they can start allocating it out.

There is still no guarantee that everyone who has or does apply for funding will get it as the scheme will be be over-subscribed on a national basis.

The message from KHE is please be patient and let them deal with what they have - the more time they spend taking phone calls will only take up time they could be using to work through the stacks of paperwork they have.

I know this is frustrating for us all (I have over 40 clients of mine in the pile down there!!) but i think it's clear we just have to wait.

I will of course continue to update this forum as anything develops that will be of use to you all.

Thanks again

Matt

wheresmydoshat

we gave up with mychoice homebuy in the end. they blatantly wanted to do everything in their power not to help us out, talk about jumping through hoops, we were treated like we were criminals for trying to get some financial help.

spectre

Matthays wrote: »

I have heard from several sources that KHE are out of funds. I have spoken with someone from KHE today who has confirmed that this is NOT the case.

They are still waiting to find out exactly how much funding they will have this time round. The situation is that they are just waiting for the funding to come in before they can start allocating it out.

There is still no guarantee that everyone who has or does apply for funding will get it as the scheme will be be over-subscribed on a national basis.

The message from KHE is please be patient and let them deal with what they have - the more time they spend taking phone calls will only take up time they could be using to work through the stacks of paperwork they have.

I know this is frustrating for us all (I have over 40 clients of mine in the pile down there!!) but i think it's clear we just have to wait.

I will of course continue to update this forum as anything develops that will be of use to you all.

Thanks again

Matt

yeh but !! no set date on when funds are available again doesnt look good.......


thanks for the update though Matt.

chrisisorange

Matthays wrote: »

I have heard from several sources that KHE are out of funds. I have spoken with someone from KHE today who has confirmed that this is NOT the case.

They are still waiting to find out exactly how much funding they will have this time round. The situation is that they are just waiting for the funding to come in before they can start allocating it out.

There is still no guarantee that everyone who has or does apply for funding will get it as the scheme will be be over-subscribed on a national basis.

The message from KHE is please be patient and let them deal with what they have - the more time they spend taking phone calls will only take up time they could be using to work through the stacks of paperwork they have.

I know this is frustrating for us all (I have over 40 clients of mine in the pile down there!!) but i think it's clear we just have to wait.

I will of course continue to update this forum as anything develops that will be of use to you all.

Thanks again

Matt

I have experienced most of the above problems, a survey race, long waits (6 weeks at current count), uncertainty about vendor's patience, being hung up on, etc. etc.

I eventually managed to talk to a manager at KHE who said similar things to Matt, many applications have been approved as such, but they cannot hand out funds because the government has not told them how much they have. I got the impression, although it wasn't said explicitly, that they could start this process as soon as they receive a figure from central government - they do not need to wait for the actual funds to be transferred. They simply cannot start distribution before receiving this figure in case they pay out too much and then are not reimbursed by government.

The whole process being transferred to Orbit in the middle of this can't have helped, nor has the economic downturn. I was told they are receiving over 700 calls a day from those with applications being processed, let alone emails and letters. As soon as they employ more staff or try and re-allocate staff to process more applications, even more applications come in. They seem to be fighting a losing battle - each days worth of applications is currently taking up to 3 days to process, the volume is so large. It doesn't take a genius to work out that that means the wait would be getting longer if they continued to accept new applications!

To top it all off, I assumed the process would take a few weeks at most, and so, not wanting to be stuck paying rent and mortgage together, gave two months notice on the flat, thinking that would be plenty of time (there's no occupiers in the new property). That's up on 22nd May, which looms ever closer...

Chris