lift open market shared equity scheme

triggerhappy_2

iscrimger wrote: »

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.

Sorry, I wasn't all that clear about my credit history. I have a good credit rating, built up through credit cards etc over some years but these are currently all paid off.

Thanks very much for all your advice, it's given me a few things to think about

JFW22

Sorry what's AIP? Am trying to get through to first mortgage just now- did you say they could give you all 3 mortgage quotes?

triggerhappy_2

Just one more question, does anyone have an idea of the upper limit of income? Just in case they do take my self employment on board and decide that I might make £4000 in a year (which is quite unlikely) - this would push my income to £22500. Would that be out of the range of the scheme for a single first time buyer?

JEWISHPRINCESS

I think it would be ok but why not call Link and ask them.

AIP means Approval In Principle.

me_and_my_boys

Hi, hope someone can help. We are currently in the process of applying to LIFT scheme and spoke with first mortgage today. They are sorting our AIP but we are a bit confused about something.

We were told by first mortgage that LIFT would prob recommend our min contribution should be 85000, and having 3 children we would qualify for a 5 apartment, so either 4 bed, or 3 bed and a dining area.

The problem is, having looked at what's available, we have seen a few homes that would be ideal, but don't seem to fit the criteria.

First one is 4 bedroom at fixed price 95000, meaning if we took our min contribution our stake would be over the max 80%. Would we be able to reduce our min input to allow them to retain 20% share?

Second one is fixed price of 120000 meaning we would have approx 71% share but it has 4 bedrooms and a dining room, meaning its too big so also does not fit the criteria

Obviously we are just having a look at what's available and things may change in the next 12 weeks whilst we find if we qualify but has anyone else came across this?

iscrimger

Firstly the scheme seems fairly straightforward but finding properties that fit the criteria can become difficult.

I am guessing £85,000 is a 60% share of the 5 apartment property, that must mean the price limit for your area is around £142k? (If I worked it out correctly, I don't have the sheet with limits to hand)

What I haven't figured out myself (partly because I can't see how I would end up in that position) is if I found a property where my min. contribution would be more than 80%. The supporting documents that are issued once accepted into the scheme seem to suggest you cannot take anything less than your minimum contribution - this is something they would have to confirm once you are into the scheme. If you are keen to purchase the property you've mentioned you could always include the details of it with your application - I haven't heard of anyone doing this but the application form does ask if you've found something.

As for the self-employed income. When you get your mortgage quote will you be using the figure? It will depend on what mortgage quotes you get, they have a sort of means testing for your income and your quotes and the price limits of the area. There is no set limit on what your income can be so long as your mortgage quote doesn't exceed the maximum share.

weesie81

UPDATE from link homes page

The Open Market Scheme has proved extremely popular an in the East Region and is currently oversubscribed.
All funding for the East Region has now been allocated for this financial year. No new funding approvals ("passports") will be issued unless current applicants with approval withdraw from the scheme or additional funding is made available.
No further application forms will therefore be issued for the East Region but you may request that your name is added to our waiting list.
Application forms for the West Region are still being issued. Processing time may be up to five or six weeks.

fingers crossed the people on this thread are in the west unless of course you already have your passport letters

monday makes 5 weeks since my application went in so i should be hearing very soon according to their new processing time. :j

me_and_my_boys

Thanks for the update. We just spoke to someone yesterday at first mortgage who said that although Edinburgh was out of cash, he thought there was still plenty funding left for Fife. Obviously not!
Oh well, looks like we have missed the boat this time but maybe next year!!

weesie81

i would still put your form in, you never know some people may not actually use their passports so may leave some funding, least if they allocate more you would be near top of waiting list! can't hurt to try

jb1305

I put my form in this week and I'm in the east, so looks like I've missed the boat this time. I'll ensure that I re-apply as soon as it opens next year.

Not great but not much I can do. Guess that gives me more time to save up some funds.