We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Ownhome scheme couple of questions

Hello everyone,

I am thinking about applying for the ownhome scheme and I am just trying to get my head around all the Pros and Cons so I can make the best decision.

Does anyone know if they make you take out the maximum mortgage the Co-op will lend you or if you can choose the amount you take out a mortage for?

Because it seems strange that they would do this as it obviously means that you end up being mortaged upto your eyeballs! But i've seen a few posts and comments that suggest this is the case.

Apart from this query I do think its a good scheme in principal.

Any help will be gratefully received.

Comments

  • fogma
    fogma Posts: 41 Forumite
    Mathrin wrote: »
    Hello everyone,

    I am thinking about applying for the ownhome scheme and I am just trying to get my head around all the Pros and Cons so I can make the best decision.

    Does anyone know if they make you take out the maximum mortgage the Co-op will lend you or if you can choose the amount you take out a mortage for?

    Because it seems strange that they would do this as it obviously means that you end up being mortaged upto your eyeballs! But i've seen a few posts and comments that suggest this is the case.

    Apart from this query I do think its a good scheme in principal.

    Any help will be gratefully received.

    we had a minimum and a maximum mortgage we could take out. You then balance the equity loan to the nearest 5% between 20-40% to somewhere within you mortgage range.

    example

    minimum mortgage 92,000
    maximum mortgage 113,000

    house price 150,000
    75/25 split = 112,500/37,500
    65/35 split = 97.500/52,500
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 352.4K Banking & Borrowing
  • 253.7K Reduce Debt & Boost Income
  • 454.4K Spending & Discounts
  • 245.4K Work, Benefits & Business
  • 601.3K Mortgages, Homes & Bills
  • 177.6K Life & Family
  • 259.3K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.