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Thoughts on Bloor HomesStart2
Degeneratemoo
Posts: 385 Forumite
Hi,
We're looking to buy a house (which would be our first home) and Bloor have recently announced that they are doing the HomesStart 2 scheme on the local estate they are building.
The houses are a reasonable size for what we need etc and would suit the purpose we want it for. We've the intention of buying a house big enough (3 bed would do) to stay in for a considerable amount of time, so any initial loss in value would probably be recouped over the years. We are not looking at this purchase as a short term thing.
The details of the HomesStart 2 scheme can be found here http://www.bloorhomes.com/about/start-2 though they are a little sketchy.. I haven't got the full terms and conditions from them yet.
Now, the basis of scheme is that we get a mortgage for a percentage of the property (80%) and Bloor put up the remaining 20% as a loan. There's no rent to pay on the 20% so it's not like the government housing association schemes etc. The 20% must be repaid to Bloor within 10 years, however, it would be 20% of whatever the house price is at the time, not what it was when it was taken out (important that bit!).
The 20% can be repaid at any point during the 10 years, you don't have to wait until the end etc. It can either be paid as a lump sum, or the mortgage can be reassessed to include the extra which would be paid to Bloor.
This scheme is aimed at first time buyers and after a quick glance appears reasonable. The house is £180,000. 20% is £36,000. A deposit of £15,000. Leaves the buyer needing a mortgage of only £125,000 to get going.
Now the best way I can see to go about this would be to put away money each month towards the Bloor 20% and pay off a lump sum + increase the mortgage for however much we couldn't save (i.e. if we saved £30,000 and the house price hadn't change, we'd just increase the mortgage by £6,000 including interest etc etc.)
But of course, it's not that simple because the 20% is paid at the value the house *will* be at the time of repaying to Bloor. In theory, if house prices were to go up by 50% then that could mean that the £36,000 could be anything up to £54,000.
There's a whole host of questions that need to be asked i.e.
Who values the house in 10 years to determine how much the 20% will be?
What happens in the event we were unable to increase the mortgage amount in 10 years (I'm guessing bye bye house, though I should be on far more money than I am currently).
Sorry for the long post, but, what do people think of this scheme? There are properties we could probably buy outright in the area but the missus really wants a new home and likes the area the new estate is in and as I say, since we plan to stay there for many years the initial drop in value isn't that much of an issue.
Ta muchly!
We're looking to buy a house (which would be our first home) and Bloor have recently announced that they are doing the HomesStart 2 scheme on the local estate they are building.
The houses are a reasonable size for what we need etc and would suit the purpose we want it for. We've the intention of buying a house big enough (3 bed would do) to stay in for a considerable amount of time, so any initial loss in value would probably be recouped over the years. We are not looking at this purchase as a short term thing.
The details of the HomesStart 2 scheme can be found here http://www.bloorhomes.com/about/start-2 though they are a little sketchy.. I haven't got the full terms and conditions from them yet.
Now, the basis of scheme is that we get a mortgage for a percentage of the property (80%) and Bloor put up the remaining 20% as a loan. There's no rent to pay on the 20% so it's not like the government housing association schemes etc. The 20% must be repaid to Bloor within 10 years, however, it would be 20% of whatever the house price is at the time, not what it was when it was taken out (important that bit!).
The 20% can be repaid at any point during the 10 years, you don't have to wait until the end etc. It can either be paid as a lump sum, or the mortgage can be reassessed to include the extra which would be paid to Bloor.
This scheme is aimed at first time buyers and after a quick glance appears reasonable. The house is £180,000. 20% is £36,000. A deposit of £15,000. Leaves the buyer needing a mortgage of only £125,000 to get going.
Now the best way I can see to go about this would be to put away money each month towards the Bloor 20% and pay off a lump sum + increase the mortgage for however much we couldn't save (i.e. if we saved £30,000 and the house price hadn't change, we'd just increase the mortgage by £6,000 including interest etc etc.)
But of course, it's not that simple because the 20% is paid at the value the house *will* be at the time of repaying to Bloor. In theory, if house prices were to go up by 50% then that could mean that the £36,000 could be anything up to £54,000.
There's a whole host of questions that need to be asked i.e.
Who values the house in 10 years to determine how much the 20% will be?
What happens in the event we were unable to increase the mortgage amount in 10 years (I'm guessing bye bye house, though I should be on far more money than I am currently).
Sorry for the long post, but, what do people think of this scheme? There are properties we could probably buy outright in the area but the missus really wants a new home and likes the area the new estate is in and as I say, since we plan to stay there for many years the initial drop in value isn't that much of an issue.
Ta muchly!
0
Comments
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Has no one got any experience of the HomesStart 2 scheme?
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No experience of it myself, but there are some Bloor homes being built near me and I had read up on the HomeStart 2 scheme.
came to the conclusion that in my area I can get larger, older homes for cheaper than the price of the Bloor homes and i'd rather buy 100% of my house and not have a 20% share to worry about paying in 10 years time when yes i'll probably be on a lot more salary but kids will also be on the scene by then.
On another note a friend went through a rough time with buying a new house with various, very large setting in cracks appearing and waiting for the builder to come and put them right. Seemed like more hassle than an older home.Squish0 -
i'd say the reason you won't get many replies is that until you look at all the detailed terms and conditions with these deals then you can't say whether its something suitable for yourself, the idea will sound good especially from a developer keen to keep its turnover ticking along but really you have to look at all the detail of the scheme as they aren't generic between developers.0
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Went to see the house today and it was horrible! A tiny box of a house. I think we'll wait and get something a little older and own 100% of it straight away.0
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Hi,
Myself and my partner have just moved into a Bloor House (9th October)using the BloorHomesStart2 and its been great. We wouldn't of managed to get on the property ladder without Bloor paying for the morgtage deposit.
The scheme they offer has been very straight forward, would def. recommend it.
The house is great, its a two bedroom and its big enough for us even has an en suite.
Laura0
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