lift open market shared equity scheme

iscrimger

Auzelia wrote: »

the whole point of the scheme is that you dont need a deposit!

AARRRGGHHH

That's slightly true but also incorrect. When you complete the application you are asked if you can contribute anything towards the cost of buying a home, some can and some can't.

I've read some notes on this scheme recently and there are lots of grey area's but they are now making it clear to anyone recommending the scheme that it is not aimed at just those who can't afford a deposit. The scheme seems to be getting a lot of applicants that are not applicable, who either earn too little or too much. There are no set figures on what is and isn't accepted but you must be able to afford at least 60% of the cost of the home you intend to buy and less than 80%. Only extreme cases will be able to take on a share less than 60%.

This change in policy with Halifax and I'm guessing Bank of Scotland seems a bit strange because Llyods seem to be still offering the deposit free mortgage share.

JFW22

Based in Glasgow. Great, I'll try them, thanks for the help!

weesie81

bumping up how are we all getting on?

Abcynthia

Well we are getting to apply to RBS because my other half is a twonk. He went back to his work to check about his probabtion period...and he isn't on one!!!!! So we can go with RBS without a deposit now...thank god. So we are back in to the brokers on Thursday morning.

weesie81

thats fabulous news :T
so i take it you were able to sort out the skipton mess?

do you have approx amounts from RBS? as they were not willing to lend us as much as HBOS were.

iscrimger

I had the same problem with RBS. They told me I'd only be valid for something like £20k! I'm not sure what they were expectin me to buy... a garage?

weesie81

iscrimger wrote: »

I had the same problem with RBS. They told me I'd only be valid for something like £20k! I'm not sure what they were expectin me to buy... a garage?

:rotfl:same here am sure it was £23k compared to HBOS £79k

how do they get such a difference in amounts?

iscrimger

weesie81 wrote: »

:rotfl:same here am sure it was £23k compared to HBOS £79k

how do they get such a difference in amounts?

They seemed put off by the total of my borrowing. From memory I'm sure it was RBS that told me to get my family to pay off everything I owed before I applied to them.

triggerhappy_2

Hi everyone. It's very encouraging to read of some of your successes here as I am about to start my application for this (I applied for the pack three weeks ago but didn't get anything so phoned today and they said they'd post it today - fingers crossed!)

One thing I was hoping you could help me with: what back up of your finances do they require? I have payslips, but will they want bank statements too? If so, how far back?

There are a few things I think may cause a problem with my application and I wondered if anyone might know if they will?

My salary is £18,500pa and I currently live in rented accommodation. I don't have any credit card debt or loans, except for a fairly sizable student loan which I am repaying through my salary. So far, so good, except:

Stumble 1: My Dad has been helping me out with some pretty big bills I built up whilst unemployed by putting £200 a month into my bank account - will this be a major problem? Will they count this as income? Should I stop this coming into my account now?

Stumble 2: I've recently started working as a photographer in nightclubs, self-employed. The work is fairly sporadic and fairly low paid (£40 a shift), I am registered as self-employed and will be paying tax on my earnings. Since I can't reasonably figure out what I might make in a year, never mind a month, will they take this into consideration?

Essentially, how deeply are they going to look at my financial situation? What sorts of things do they ask you for? I have nothing to hide, but I wouldn't want to be rejected purely on the basis of *potentially* making money through self-employment or because my Dad is helping me with some debts.

Thanks very much in advance!

One more question!

What do they mean by "one room more than your exisitng need"? From the leaflet: "Although it should be suitable for your current housing needs, you can if you wish buy a home which has one room more than your existing need. For example, a couple would be eligible to buy a home with two double bedrooms." - does this mean as a single person living alone I would also be able to buy a two bedroom property? On the Maximum Price Ceilings table on the linkhomes.co.uk site they mention a limit of £75,000 on a '2 apartment' property, does this mean lounge & bedroom or 2 bedroom? I doubt I could find much in Glasgow for under £75k

Apologies for all the questions, I'm so confused!

iscrimger

I don't think they delve too far into your earnings but they do look at it against your provided mortgage quotes.

Your mortgage quote must be at least 60% of the minimum property you can purchase and no more than 80% of the maximum property you'd be entitled to.

You should declare all of your income, I'm not sure about your Dad's payments for bills - if all of this money is going on bills would it not make more sense for him to just pay the bills directly. I do think there was a section on self-employment on the application form but I can't remember.

I have a flatmate who pays me rent/council tax/bills for the property we rent. I did not include this in my application as it's technically not income because my flatmate is named on the tenancy & council tax. You are required to submit your tenancy agreement if you rent.

If you plan to live in the property yourself you will be allowed to purchase a 2 bed property, this is a 3 apartment property. 2 bedrooms & 1 Living room. If the property had 2 beds, 1 living room & a dining room this would not be eligible as it would be a 4 apartment property. Later in the scheme you are told an apartment is classed as a room that is not a bathroom or kitchen. (There are some sizes which rule out certain rooms as being classed as an apartment)

Your Student loan will not show on your credit history, and your lack of credit history could put off mortgage lenders as they have nothing to look at to show you are capable of paying back what you owe.

I would, as a matter of urgency, get a copy of your credit report. You say you have some large bills that your Dad is helping you with - some companies do report your account details to credit agencies. Mobile phones contracts and utility companies such as British Gas will report your account status, and if you have a large outstanding balance this could be being marked as a default on your credit report and may also have an effect on trying to get a mortgage.