Barratt homes - MoveMaker Scheme. Does it work?

Muhasib

skemp1 wrote: »

Will keep the post updated.

We are doing the homebuy direct scheme where the government puts up the deposit, it's called shared equity. It's an interest free loan for 5 years.

You still need a deposit for the 75% of the mortgage that you end up taking.

Fingers crossed for a quick sale, we got caught with the reducing house prices as we bought our first home in 2007 and have just got to the stage of overpaying back into equity. Problem is we don't have a lot of equity in our home.

We shall see.

Skemp1 - Have they approved you for Homebuy Direct, the eligibility criteria states ' must not already be homeowners or named on a house mortgage.'

just a bit puzzled by you saying you're selling and applying for this scheme?

skemp1

I am aware of the criteria.

I had to get an housing nomination number from the council. Orbit advised me to do this and have said that I will be accepted.

It was a lot of hassle to get the nomination though, it took 6 weeks or so.

RenStar

We were going to do this but with David Wilson Homes (who are part of Barratts). The sales agent told us that they will send three local agents around to value your property 'to sell' which means the asking price will be lower than on the open market. The agents then have 6 weeks to sell your house. They take care of the HIP and agent fees but not solicitors fees or stamp duty under Movemaker.

In the end, we decided not to go with the Movemaker scheme. DWH told us the agents they used so we got them out first to value our property and asked them two questions: how much we could market our property for in normal circumstances and how much for under the movemaker scheme. The all gave us around about the same valuation with the Movemaker valuation being within about 5-10K lower which we'd have been happy with. When DWH sent the agents around (they only sent around 2 agents, don't know why), they then called us to recommend we put the house oth market 15K below open market value and accept an offer 25K below open market value. We asked them if the would be willing to discount their home by the same margin and they said no so we walked away as it would have meant us taking on a bigger mortgage for the new property than we were willing to do.

I think if you have loads of equity in your property (we only have about 15%) then the movemaker scheme might work for you but if like us the margins are bit tight then you may find their reduction a little hard to stomach. We have now decided to sell ours independently via Housenetwork.

skemp1

I think that it's not going to work for us, but the barratt guy was adament that it would.

We don't have much equity at all, they were thinking of doing a p/x with us but they would only offer us £100,000.

The 3 estate agencys that came round said they would market it for £113,000 with a view of selling it for around £110,000? So we backed out the part exchange. As our motgage is £107,000.

I will let them try and see what happens.

poshgem

Hi Skemp I am intrigued by your thread as we are in same position, we are awaiting the local council to nominate us, we are also doing barratt movemaker and orbit is local homebuy agent. Just wondering where your at now and how the process has been.