First Time Buyers/Keyworkers No Deposit

redstararnie76

While I agree that some of these schemes can harm the economy as a whole, I think you have to look at individual circumstances.
For my husband and I, Knightstone Housing Association's Shared Ownership scheme has been a life-saver for us. When we entered into it, I was expecting my first child. Although our wages weren't bad, we couldn't afford the mortgage on even a one-bedroom house as the largest mortgage we could get was £85,000 at the time which just wasn't big enough for the properties in our region. We couldn't save enough for a deposit because the amount we were paying in rent was eating up too much of our wages. When we got our shared house (we own 25%) of it, it meant that our combined rent and mortgage payments are still £200 a month less than we were paying in rent and we have more room for our family.
While I understand the concerns and acknowledge that these schemes aren't ideal for everyone, at least this has now given us a chance to save up some money.
However, in the interests of balance, I must mention the fact that there are also some downsides - it's not so easy to move, the checking delays any chance of a simple sale etc, but for us at least the positives have outweighed the negatives.

redstararnie76

I am sure that some of you may well flame me, judging by previous comments, for putting mine and my family's interests before the economy in general, and perhaps I deserve it, but there is a reason why such schemes are dreamt up in the first place - to help those that have little other resource.
I refuse to feel guilty for using a scheme that was introduced to help people like me - first time buyers - would it really make that much sense for me to continue struggling to make my rent payments and unable to save when there is a totally legitimate scheme available to me?

tilly2484

Well done Michael for getting on the property ladder. Some people on here obviously have a bee in their bonnet but i say do whats best for you and not what's best for other people. That's the kind of world we live in now i'm afraid.

As for those with sarcy comments and trying to belittle- grow a pair:wall:

Catblue

Can someone explain to me how this scheme (and others) works when you want to sell?

Is there a charge on the property (the loan) as well as the mortgage?

Do you have to clear the outstanding loan before the Co-op will allow you to sell? Are you stuck there unable to sell if you cannot repay the loan at that time?

Idiophreak

Catblue wrote: »

Can someone explain to me how this scheme (and others) works when you want to sell?

Is there a charge on the property (the loan) as well as the mortgage?

Do you have to clear the outstanding loan before the Co-op will allow you to sell? Are you stuck there unable to sell if you cannot repay the loan at that time?

Can't speak for the co-op ones, but most of the shared equity schemes (main difference between shared ownership and shared equity is whether or not you pay rent on the portion of the property you don't pay for) work like this:

You borrow the deposit from the builder /government etc for a period of up to 10 years, interest free. You can repay the deposit in part, or in full, at any time before that 10 years. The amount you repay is 25% of the property value at that time (as worked out by two independent valuers) - so it may go up or down.

Obviously, if you sell, you just give the builder 25% of what you get for the place and job's a good-un.

british_2

So much negativity from these people against homebuy shared equity, I cant believe it, so much bitterness and jelousy it seems. I have been accepted on the Homebuy direct scheme and think it's great. We are getting a great house, in a great area, for a great price, that I would have never of got without this help. Everything about it is positive, but some people always have to try and spoil it, sitting in their bedrooms all alone, with nothing better to do than sitting in these forums being negative, they really do need to get a life. Im getting a house for £165k, with £50k from govenment and mortgage for £115 interest free for 5 years and then the interest goes up very slightly each year with RPI + 1%. Whats best? do this or keep renting off some greedy landlord for an old house that has been lived in 50 times before. :T :T :T :T

suze_g

Surely 110% mortgages at 6 X salary were bad for the market as well. There is no way I as a first time buyer now could get that, (or want that).
I'm buying through the mychoicehomebuy scheme. I know how it works, I have my eyes open.
I'm a lone parent living in London and with my income could have afforded a one bed flat for my 2 children and I, even with the £20K deposit I've saved. I work really really hard, pay all my bills, pay shed loads of tax and NI, have never been in debt or even missed one payment on anything.

It's my one chance to buy somewhere. I've thought long and hard. I don't think it's ideal but If I waited much longer I would have trouble getting a mortgage due to my age and the repayments would be too. I plan on selling probably in about 10/15 yrs and the government will get a piece of the pie and of course I'll carry on working and paying my taxes and national insurance.

Wickedkitten

british wrote: »

So much negativity from these people against homebuy shared equity, I cant believe it, so much bitterness and jelousy it seems. I have been accepted on the Homebuy direct scheme and think it's great. We are getting a great house, in a great area, for a great price, that I would have never of got without this help. Everything about it is positive, but some people always have to try and spoil it, sitting in their bedrooms all alone, with nothing better to do than sitting in these forums being negative, they really do need to get a life.Im getting a house for £165k, with £50k from govenment and mortgage for £115 interest free for 5 years and then the interest goes up very slightly each year with RPI + 1%. Whats best? do this or keep renting off some greedy landlord for an old house that has been lived in 50 times before. :T :T :T :T

Aside from the waffle about everyone being negative about these schemes, are you sure that your mortgage is interest free for 5 years? It's only that the way you wrote that makes it look like you think the entire 165k is interest free for 5 years instead of it just being the equity loan bit.

Idiophreak

Wickedkitten wrote: »

Aside from the waffle about everyone being negative about these schemes, are you sure that your mortgage is interest free for 5 years? It's only that the way you wrote that makes it look like you think the entire 165k is interest free for 5 years instead of it just being the equity loan bit.

They also say the mortgage will be £115, so I wouldn't read the post too literally. I think we're looking at typo/poor grammar, not at misunderstanding...

british_2

Oh I am so sorry, it seems I missed the k off of £115, but it seems as though you could work out what I meant. I do have to rush etc, due to looking after 2 kids. Anyhow. I do realise that the £50k loan is interest free for 5years then interest applied after @ 1.75% rising annually with RPI + 1%, great. The £115k mortgage is NOT interest free (I wish), that would be silly. :money: :money: