MyChoice Homebuy or Ownhome

tilly78_2

This is my first post so please be gentle.

I have been accepted on the MyChoice Homebuy scheme, however I have also noticed there is a similar scheme called Ownhome which funds upto 40% of the purchase price and there is no interest to pay for the first 5 years.

Personally looking at the two the ownhome seems the better scheme as you pay no interest, however you have to have a co-op morgage which i suppose could be a higher interest then the one you could get through MyChoice, resulting in paying pretty much the same.

I would be very grateful for any advise on which one of the two is the better deal and even though you are excepted do they run out of funds??

Thanks

llh189

Hold on tight for all the anti SO people to rock up and tell you not to touch either scheme with a barge pole.

You might want to check out some of the other current threads on this topic too.

I am buying under the mychoice homebuy scheme and have just had my property signed off.

Personally the ownhome scheme was too restrictive for me and the my choice homebuy offered me more alternatives and I felt more in control of what I was doing.

Whilst not wanting to add to your pressure I would make a decision quickly and see all the properties in your area that fall in to your either scheme and then start the ball rolling.

The money runs out really quickly, this is my third attempted - PLEASE note I am not saying make a rushed decision but do make a decision and properly understand what you are getting in to.

HTH

tilly78_2

Thanks for your response...

Just out of curiousity why did you find the ownhome scheme more restrictive?

Do you know if the property has to be in pristine condition as a flat i like has a small damp problem that is easily fixed??

Thanks

llh189

I wanted to be able to get my own financial advice and choose which mortgage was better for me.

I understand, not through personal research though, that the products on offer through the co-op were are not the best on the market - therefore over the term of your mortgage you will pay excessive amount of interest which could seriously outweigh the 5 years free payments that you first received.

I also think that you need to do a full survey, as opposed to the middle costing homebuyers survey, so more money upfront.

I was looking at a 5 year fixed deal, without an arrangement fee, through the co op a similar scheme had a fee of nearly £1000.

I can't remember the differences in interests rated were though.

HTH

geoffky

Do Your Homework.. And I Mean Spend A Very Long Time On This Then You Can Do It As Someone Who Is Imformed....because Their Can Be Big Problems With These Schemes.....many Many On Here Are Against Them....do A Search

llh189

Good advice from Geoffky about insuring that you make an informed choice.

But please bear in mind that some of those who are against these schemes on this forum are themselves under ill informed about these schemes.

Do make an informed choice - if in doubt seek independent financial advice!

brit1234

Its a scheme designed to keep prices high and you risk serious negative equity with prices falling 2% a month.

Have you a deposit?

if you have you could go to an auction and get more for your money. It will reduce your negative equity.

These schemes usually trap people without deposits.

ninky_2

brit1234 wrote: »

Its a scheme designed to keep prices high and you risk serious negative equity with prices falling 2% a month.
.

i think this is wrong. the ownhome scheme (unlike completely different SO schemes) actually seems to protect you from negative equity since if the property falls in value, so does the amount you owe. the downside of this is that if the property rises in value (not looking at all likely in the forseeable future), you also do not benefit from the capital increase.

the amount of capital you have paid off is actually protected by this scheme and seems a much better option than paying out to a private landlord since you are building up your own slice of equity.

you are also able to buy any property you wish so are able to use the negotiating advantage of it currently being a buyers market. this is far better than new build shared ownerships which tend to be very overpriced.