Homebuy Direct - The good, bad & ugly

merlotsmum

Have used this site for a while now as a lurker and have seen some good advice.

Could anyone share experiences on their Homebuy Direct as I am currently at stalemate with the valuation.

Cheers
Merlotsmum :T

Muhasib

MM - do you have any more details to share; let me guess that you are buying a new build apartment which the mortgage lender in its valuation has said is worth less than the developers price but that the developer won't shift on this and is expecting you to make up the difference....
Probably either 70 or 75% max they will lend anyway of the valuation

let me know how much is correct....

merlotsmum

muhasib wrote: »

MM - do you have any more details to share; let me guess that you are buying a new build apartment which the mortgage lender in its valuation has said is worth less than the developers price but that the developer won't shift on this and is expecting you to make up the difference....
Probably either 70 or 75% max they will lend anyway of the valuation

let me know how much is correct....

Hi there

The Homebuy Direct Scheme doesn't expect me to make up the difference.

I am buying a house and it has come in £10k less on asking price. The have instructed another valuer to value and I have been told if they say the same they will come down on price (the builders) and there is no question of me making up the difference.

It has run into weeks now and I am feeling very jaded by the whole thing to the point of giving up :-(.

Best regards
MM

tek-monkey

They instructed the new valuer? Would be a tad wary of this TBH! I expect it to come back at their price regardless, maybe a grand off to make you think they've actually listened. Regardless your lender will only lend on their valuation wont they?

poppy10_2

The builder/estate agent have instructed their own valuer? That's hardly going to be independent now, is it? Stick with the valuation you have got, and negotiate the price down. If they won't reduce the price, walk away - future buyers will get the same valuation you got.

merlotsmum

Hi all

Thanks for responses, it is a valuer from the only other mortgage comp-any we can go through - RBS (joy I know). My valuation is via Halifax (even more joy). First indications is the RBS chap agrees with the Halifx chap - £10k off so looks like we could be moving forward.

Best wishes
Bev

Bermuda_John

Firstly, you should instruct your own surveyor they will prepare a report which sets out the basis of the transaction; they will provide evidence to support the open market value and will explain, in surveyor terms, how the transaction is being constructed, ie you will be purchasing at an agreed discount of the market value due to the particular circumstances of the vendor etc.

This report should be passed to the mortgage valuer by your surveyor prior to them carrying out their inspection. If the procedure is followed correctly then the mortgage valuer will be duty bound to report the actual market value to the lender and not simply the purchase price. It should be noted however that the lender will still only lend the LTV percentage of the valuation or purchase price, whichever is the lower.

Antispam

Bermuda John signature reported as links or adverts are not allowed in them

Bermuda_John

i have removed the link

jesus, there are a few sad people on here!

tek-monkey

Not really, rules are rules.

v9017899

Hi Guys. Ive heard alot of doom and gloom about this HomeBuyers Direct scheme but in my instance its the only way i can have my own home. But now theres a problem
I have 4 children and is married. I`m renting a 4 bed house and want to have my own house. Now the problem is i`ve gone back to university to get a degree in computer science, so there is only one wage coming in and its not a bad one either compared to most woman who look after children as she is a staff nurse. I with all my accumulation of grants loans and bursaries child tax credits and etc etc is around 24000 (i dont know if they take that into account) wifes around £20000. Around 6years ago we had a house and sold it when we sold it we thought all the loans and such would be paid off from the proceeds from the house. So we asked the bank (RBS) and they said yes they have. A year ago we got a phone call (after we have moved rented accomodation three times) from a agency employed by RGS to find us it was then they said we owed 12,000 from a loan we took for a conservatory. It was then the penny dropped why we havent been able to get credit anywhere or even get a high interest creditcard. So the next day i went and paid this off after a settlement figure was agreed. It will be on my file for 6 yrs but now would say settled. I looked at my credit file and there was a couple of reds but all settled or satisfied. So a year later we decided to go with this HomeBuyers Direct as this would give me the only avenue to buy my own home as i was still at university. We picked the house and applied through the broker! we where turned down again. He looked into my credit history and with a few past hickups but all cleared he seems to think there should be no problem (backed up with letters from banks and building societies vouching all paid off). I always thought if you declared your partner on your credit application then hers would be on your credit search as well, this i found untrue! we have opened my wifes credit file and 8 years ago she had a credit card that she maxed out cos we where in difficulty and have been paying off the minimum (not a wise thing to do as its just never goes away) and somewhere along the line she started to forget to send the cheque to them we had moved and things where up in ther air at the time between us. So there was the debt! and straight away we rang them and paid it off so after three weeks now and looking at the credit history all debts are paid off and we are free from it all. Now the problem for us is that the builders have said that HomeBuyers Direct scheme is stopping in March (not good for us!) and that will leave us scuppered. You see i do have a deposit of 35000 as well but it has to be a 4 bed and in NE england near there school i`m looking at 195000 for one being a new build of course. Its a lovely big house and the family is grown at 15 12 10 and 5. My age will go against me soon so i`m now very worried because without this scheme i dont see any way forward. It will take 6 months to show on the credit that we are not constantly taking more than we can afford. Indeed were very carefull. I read on here if i get a very high interest rate card (only ones left open to me) and get goods then pay it all off before the interest kicks in and keep doing that it will help my credit score so i applied last week for one of these special credit cards for only ppl like me and i still got turned down. So ive applied, failed and it could go against me on my credit score again! The only thing i could think of why i was turned down is that have they had not got me on the electoral roll (renting and moving can some times do this) and indeed they hadnt so i will appear now on the register in december. There are a few negatives (reds) on the search which at first glance would be against us for a morgage but i have paid them all off and in deed its been many years that we had asked for credit but the repayments on that credit card the wife forgot about and also the verbal indication by the bank that loans would be paid off from the house proceeds i thought we where ok
.. What am i going to do now that the scheme is being scrapped. I would have only had to find 110,000 on a 195000 with there 30% and my deposit so it was in the reach of me getting a morgage.
Forgetting our infidelities of the past and the positives of the future is there anything we can do sooner rather than later I`ll be 47 by time i leave fulltime uni. It seems a cant even get a high interest card 29.9% as dvertised on here!
Cheers sorry about the war and peace i just needed to get the problem off my chest its like a weight believe me.