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Keyworker mortgage

polardesign
Posts: 36 Forumite
HI all,
First off I am a keyworker, HM Forces, earning £42,000 and my only outgoings are utility bills as I have no loans.
I am after some advice before I speak to a mortgage adviser.
I am looking at purchasing a new Property for £190000.
I am looking at the different Schemes and one is the homebuy scheme etc where you buy 50% of the property.
Now if I am buying 50% of the property then I only need a deposit to cover the £95000 that is 50% of the cost of the house, is this correct. As getting a large deposit is quite difficult at the moment.
What other pit falls are there using these schemes
Thanks for any advice
First off I am a keyworker, HM Forces, earning £42,000 and my only outgoings are utility bills as I have no loans.
I am after some advice before I speak to a mortgage adviser.
I am looking at purchasing a new Property for £190000.
I am looking at the different Schemes and one is the homebuy scheme etc where you buy 50% of the property.
Now if I am buying 50% of the property then I only need a deposit to cover the £95000 that is 50% of the cost of the house, is this correct. As getting a large deposit is quite difficult at the moment.
What other pit falls are there using these schemes
Thanks for any advice
0
Comments
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If I was you I would buy a smaller prperty and own and mortgage it myself. I dont trust these schemes at all. They are in it to make money my opinion not to your benefit0
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Have you thought of saving for a year or two? Then you could go the standard mortgage route and you'd have a wider choice of properties and mortgages.Kavanne
Nuns! Nuns! Reverse!
'I do my job, do you do yours?'0 -
I need a house before then....thanks for the advice....
Anyone know of any good mortgage forums?0 -
Have you looked at the Homebuy Direct scheme?
You own 100% but the Government and the builder will lend you the deposit of up to 30%. You have to have total earnings of less than £60k a year and also stand a better chance of of qualifying as a Key worker.
After 5 years you do have to pay interest on the loan given on this scheme, and then pay it back when you sell of 25 years have passed.
The amount you pay back is always the % of what the house is worth. So if you got the full 30% you pay back 30% of the house price when you sell/25 years have passed.
There seems to be a lot of people on here that don't like or trust any scheme where there is help available but only you can decide if it is good for you. Have a read up and visit a builder that is part of the scheme.
http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_1715040 -
Thanks...the schemes are there to help.
I have noticed there is a bit of negativity with the schemes but if it means getting on the ladder then there is no problem.0 -
polardesign wrote: »
I have noticed there is a bit of negativity with the schemes but if it means getting on the ladder then there is no problem.
As long as you are happy with the terms of the scheme and it gets you in a position to buy a property then go for it.
3 months ago I didn't think I was able to buy as I simply miles away from paying a deposit. We stumbled across the scheme and we are days away from exchanging contracts and then moving in for the start of the new year.0 -
just a word of caution about Homebuyer Direct in that with your income level they may scale back the amount of equity they will allow at 0% interest from 30% to something lower like 25% or even 20%, the amount isn't fixed although all the marketing literature will quote the 30%.
The good thing is that you don't need a deposit and can still get a mortgage from a couple of high street lenders who deal with the scheme to cover the outlay.
One question I have for the forum is if anyone can give an indication of the period between flash to bang from submitting an application to the Housing Association dealing with HBD in particular and 'authority to proceed' being issued.0 -
The good thing is that you don't need a deposit and can still get a mortgage from a couple of high street lenders who deal with the scheme to cover the outlay.
One question I have for the forum is if anyone can give an indication of the period between flash to bang from submitting an application to the Housing Association dealing with HBD in particular and 'authority to proceed' being issued.
RBS and Halifax are the lenders on HBD.
The time depends on the agency working on behalf of the Government. The turn around time should be 8 working days. However we went through Orbit and it took 3 weeks for them to get it wrong but then just 3 days to sort it out.
Once you have the approval letter you pop off to the builder and reserve your property. Send the reservation form back to the agency and it took 1 week for our authority to proceed to arrive. So around 5 weeks for us, but it "should" be less than that as the agencys get used to the system.0 -
So can you confirm with the home buyer direct scheme, you don't need a deposit?
Obviously having completed my IVA it will still be difficult to get a mortgage0 -
polardesign wrote: »So can you confirm with the home buyer direct scheme, you don't need a deposit
Obviously having completed my IVA it will still be difficult to get a mortgageKavanne
Nuns! Nuns! Reverse!
'I do my job, do you do yours?'0
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