HomeBuyDirect being scrapped

v9017899

Has any one heard of this. I was told by Millar homes show house girl that in March 2010 its being scrapped??

Ive have 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 there's a problem.

I have 4 children and 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, (though not a bad one as she is a staff nurse).

My income, with all my grants, loans, bursaries, child tax credits etc (I don't know if they take that into account) is around £24,000. Wife's income is around £20,000.

Around 6 years ago we sold our house. 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. They said we owed £12,000 from a loan we took for a conservatory. It was then the penny dropped why we haven't 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.

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 were turned down again. He looked into my credit history and with a few past hiccups but all cleared he seems to think there would 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 wife's credit file; 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). Somewhere along the line she started to forget to send the cheque to them. We had moved and things were up in the air at the time between us. So that was the debt! Straight away we rang them and paid it off. Three weeks later, 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!) That will leave us scuppered. You see I do have a deposit of £35,000 but it has to be a 4 bed and in NE england near their school. I'm looking at a £195,000 house (a new build of course). It's 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 we're very carefull. I read on here if I get a very high interest rate credit card (the only ones left open to me), make purchase and pay it all off each month before the interest kicks in, 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 I've 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 hadn't. 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. Indeed it's been many years since we asked for credit, but between the credit card that my wife forgot about and also the indication by the bank that loans would be paid off from the house proceeds, I thought we were 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 £195,000 house with their 30% and my deposit, so it was within reach.

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 I can't even get a high interest card at 29.9%!

Cheers - sorry about the war and peace, I just needed to get the problem off my chest. It's like a weight believe me.

Bufger

well you're better to be in employment. From everything ive read my only advice would be to keep saving (get to 40k and thats 20% = better rates) and finish your course. By the time you do you will have a better chance - if you can keep your credit score improving.

dopester

v9017899 wrote: »

What am i going to do now that the scheme is being scrapped? I would have only had to find £110,000 on a £195,000 house with their 30% and my deposit, so it was within reach.

I'll be 47 by time I leave fulltime uni. It seems I can't even get a high interest card at 29.9%!

Without these stupid schemes, which are only there to try and support extremely high house prices, house prices will have to fall.

After all, people need the ability to pay for a house, and many people require borrowed money to do that.

If crazy HomeBuy schemes and other lenders are not willing to lend mad money to borrowers... then you have a lot of house sellers who won't be able to achieve their asking prices.

Values for all owners are determined by those actually transacting, so if some start accepting lower prices for houses, it drags down value of other property.

Why would you want to buy before this scheme is scrapped? There can only be one outcome on the value of the home you'd buy, after the lending money from the scheme stops flowing.

PasturesNew

In the current market - and how it'll be for a few years yet - you're much better off waiting until you're out of Uni and found yourself a job. Then you'll be in a position to decide where you want/need to be and to buy a house with confidence ... instead of out of fear of missing out on something.

There is no rush.