First Time Buyers/Keyworkers No Deposit

british_2

SHARONWAI wrote: »

so complicateD?

Not really. A few different schemes about. Read all the info, try to take it all in and then the world is your oyster. Oh and see an IFA. Just DO NOT listen to the negative comments on these forums. :j

british_2

suze_g wrote: »

Well it was supposed to be lighthearted, and pointing out to the other poster that we all make typos, but it was obvious to me what you meant anyway.

I'm very sorry Suze. As you were quoting me I thought you were having a dig, keep up the light heartedness, it's needed round here.

grovice

Catblue wrote: »

I was just responding to the couple of comments about getting on the property ladder. It's not a ladder if it only has one rung, is it?

My impression is that these schemes are really for people who want to live in the house for a long time, and not for people who will be trading up or down in a couple of years.

I suspect that not many people will be able to pay the loan back in a very short space of time - if they were able to do that, they'd just wait and save and then get a conventional mortgage.

yes I realise that the term 'property ladder' means to climb up it, but its a coined phrase for having a mortgage nowadays and doesnt necessarily mean you are going to spend the next 30 years selling up and moving to get a bigger and bigger house.

These schemes are necessary nowadays with house prices being what they are, if you start saving as soon as you start work then by the time youre 30 you could have a large deposit necessary since the economic downturn, but if youre already 30 then what choice do you have, spend the next 10 years saving in todays inflated cost of living times and if you dont make the deposit by the time youre 40, you are looking at a 20 year mortgage repayment only, with prices ever on the up

michael1983l

http://www.ownhome.co.uk/servlet/Satellite?cid=1213946567253&pagename=CFScombi/Page/CFSCtplBlank

Here's the link for those that want to read more

Idiophreak

Yakubu22 wrote: »

And the first people who get it in the @$$ will be those most vulnerable in things like these schemes. As they have the least financial security to ride out any problems. Thats my opinion anyway...

That has !!!!!! all to do with these schemes...

The ones that are going to struggle first are the ones with least financial security, period.

Take my situation - 200k property. If I'd bought on the open market, I'd have a mortgage of £180k and would need to service a loan to raise the deposit, too.

On the other hand, with shared equity, £150k mortgage, no loan, so can afford to save for deposit and a lower interest rate to boot thanks to the higher deposit.

You can't tell me I'd be more financially secure in the first scenario.

It's important to remember that a lot of people are taking these schemes because they don't want to wait years saving a deposit, not because they can't afford to service the higher mortgage...

(hells bells, a couple of years back I'd have taken a 100% mortgage and that would be that - too bad that's not an option these days...)

carefullycautious

But what happens if you are settled in your home with say three children and all the added expense they bring and house prices start to rise. How in Gods name are you going to be able to pay back the huge amount you will owe? The fact that you are on lower incomes to start with and may not have substantial rises throughout your working life means that unless you win/inherit a large amount of money there is no way of paying it back. Dont under estimate just how much it cost to run a home, feed and clothe children etc etc. I am not saying this to be negative in any way just that I cant see how you are going to manage unless as you say if house prices were to go down and stay down then you would have less to pay. Anyway good luck with your purchase I hope it all works out for you all.

HomeBuy3780

Hi michael1983l, Ignore all those who are anti - Homebuy. I am with you and very serious about home buy. I think this is a very good scheme.

PLease do you know:

1. How do they calculate affordability? For example if total house hold income is 55000 per year, what will be the MAX amount of property value we can go for?

2. How do they specify number of bedrooms we can go for?

I appied before 2 months, havent heard yet!

Many Thanks for this thread and your posts.

smileykylie_2

The ownhome scheme is VERY busy at the moment and are quoting an 8 week callback just to check your eligibility - so if you are in a hurry might not be the scheme for you!!!

HomeBuy3780

smileykylie wrote: »

The ownhome scheme is VERY busy at the moment and are quoting an 8 week callback just to check your eligibility - so if you are in a hurry might not be the scheme for you!!!

Think 8 weeks = 2 months, almost end of waiting time then!!!!

:T

michael1983l

HomeBuy3780 wrote: »

Hi michael1983l, Ignore all those who are anti - Homebuy. I am with you and very serious about home buy. I think this is a very good scheme.

PLease do you know:

1. How do they calculate affordability? For example if total house hold income is 55000 per year, what will be the MAX amount of property value we can go for?

2. How do they specify number of bedrooms we can go for?

I appied before 2 months, havent heard yet!

Many Thanks for this thread and your posts.

1, The co-op calculates affordability by a calculation of a multiple of your wage minus outgoings so I have no idea, they will tell you that.

2, You can have one more bedroom than your family requirment, i.e. you, partner and one child = up to 3 bed

you your partner and 2 child same sexx = 3 bed

you your partner and 2 children of opposite sex = 4 bed.


3, It took 6 weeks for me.