LIFT open market scheme help please?

weesie81

hi we are in scotland and have been looking into this and think it may be an option for us.

has anybody got any experience of buying this way or has anyone helped someone work out a mortgage for this?

i would really appreciate any replies thanks .

weesie81

anybody?

iscrimger

I've applied and I know a couple of others on here who have also. One has now made an offer and had it accepted and has a move in date!

The process seems simple - my application took a little longer to process for some reason but I got my acceptance letter over the weekend.

Getting Mortgage quotes for the scheme isn't the easiest thing to do as some lenders do not support the scheme for some reason. My advice would be to go into a branch to get your quote and show them the letter & application for the scheme.

Once your application is processed you get 12 weeks to make and have an offer accepted but you do not need to move by then - the offer must simply be accepted.

I'd get my application in quickly as they have had a lot of applicants and they seem to now be staging how many are approved at once.

The following are known to take part;


The Co-Operative Bank (They told me they no longer support the scheme)
Dunfermline Building society (Are very much aware of the scheme and very helpful)
Halifax (Bank of Scotland) (Gave me the biggest quote on the basis of joining the scheme)
Intellegent Finance
Leeds
Lloyds TSB Scotland
Nationwide
RBS
Scottish Building Society
Skipton building society
Standard Life

Several lenders came up with unique and crazy idea's also. One lender told me they support the scheme but I would also be required to make my own deposit of 5% of the property price before I could get a mortgage for my share under the scheme. (This completely defeats the purpose of the scheme)

One lender also told me to pay off every penny of debt I have before they'd give me a mortgage- this included higher purchase items and a fixed loan. When I said how exactly was I to do that in 12 weeks I was told to get my parents to pay. His seriousness and attitude to the matter shocked me most!

weesie81

thanks for your help i am currently awaiting the application pack i requested online

can i ask if you had any deposit at all?
i have heard (and am unsure if its true) that a seperate dining room counts as another apt so a 3 bed house with 2 reception rooms is considered a 5 apt?
we bank with bank of scotland / halifax so would have been my first place to try
can i ask what kind of int rates deals they were offering you?

also in what order do i need to do this? do i fill the form in and wait for approval before getting quotes or do i try to find out how much i can borrow prior to completing form?

sorry for all the questions am a litttle excited at the thought of leaving our private rent home so am raring to get going!

iscrimger

You require 3 quotes from different lenders before you submit your application- if you cannot provide 3 you have to provide a reason as to why.

You do not need to find out mortgage rates for your application. You simply have to contact lenders and find out how much they would be willing to lend you for the scheme based on your income.

You have to declare all of your income from your Salary, Savings & Investments. If you have savings or investments you are required to use them towards your share for a home. They will assess your situation once you submit your application but you do not have to use all of your savings for the scheme - they will instruct you.

For me I have no savings or other income available other than my salary. I also explained on my application as to why this was. Therefore my acceptance letter states I cannot contribute anything to the cost of buying a home and my only contribution is the amount of mortgage I can obtain.

The scheme also bands properties into 2,3,4,5,6 apartment properties. A 2 apt property is a 1 bed. 1 bedroom & 1 living room. 3 apt is 2 bed & living etc etc. Kitchens, Hallways & bathrooms are excluded. Therefore if you are looking at a home with 2 beds, living & separate dining room this would be classed as a 4 apartment property.

Most of what you need to know is answered in what they send - once accepted you might have some questions. It seems bit more official and go go go.

I am in a private rental, I recently moved from one following it being repossessed. (Which is why I applied to the scheme - whether I can buy the repossessed property is something ongoing). My new private rental is also being repossessed so I fully intend to make use of this scheme within the 12 weeks!

weesie81

thanks again so i may be best trying to organise appt withs some banks to make enquiries.
we have a large personal loan do you think this will matter?
we have no deposit and no way of saving whilst we pay £650 pcm private rent so i hope i meet their criteria.
how long can i ask does the process take from start to getting approval?
also did the other people you mentioned about involved in the scheme all get approved or are many being turned down?

sorry to bother you with all these questions when i rang this morning they were not very informative :rolleyes:

iscrimger

There isn't really much to tell about the scheme, it's basically very simple. The government pay for a share of your home and you pay the mortgage for your share. Eventually you will own 100% of the home or sell the home and give them back however big a percentage they put in.

I haven't heard of anyone being declined. I would imagine if your income is too high they would turn you down. For example if you could obtain a mortgage higher than the ceiling limits. I think I read somewhere about the income limits but I can't remember.

I had my name put on the list for applications very early on by an MP, before they scheme for 2009 launched. I think they started sending out forms Early April. I got mine about then. You have to return it within 2 weeks - mine was returned in mid May so I could clarify something on my application. It was stamped 8th May and I got my letter of acceptance on July 18th. Takes 6-8 weeks on average.

They have had a lot of applicants and there are limited funds for the scheme and they are apparently only approving a certain amount at a time to help the funds last longer.

weesie81

thanks again i really appreciate all the info you have given us.
am glad you have been approved and hope you find somewhere nice to buy.