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Homebuy Direct mortgage

Hi, Im new to this.

I was wondering if anyone knows if a deposit is still required with a homebuy direct mortgage (70%).
Thanks

Comments

  • brit1234
    brit1234 Posts: 5,385 Forumite
    Yes the banks have started imposing them as they are so overvalued and likely to fall a lot in value. Its just price risk protection for their lending. Far better to save a deposit and buy a normal property.
    :exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.

    Save our Savers
  • sgh1976
    sgh1976 Posts: 424 Forumite
    Part of the Furniture Combo Breaker
    5% Deposit now need for RBS & Halifax.

    House values.

    Who exactly is over pricing them? The banks get a valuation done and if that matches the builders asking price is that the right price or are both of them in on the "scam"?
  • tek-monkey
    tek-monkey Posts: 1,434 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Ignore brit, he's a part ownership hater. He scours these boards for anything SE/SO related and posts negative comments. Seems to think all aprt ownerships are like HA ones, where the property itself is forced part ownership. Most schemes nowadays seem to be any property, and they put a charge on it for a percentage, so no difference in buying/selling to any other place. Doesn't actually own a place either.

    Anyway, I have no idea on the Homebuy Direct scheme, did you not get any paperwork with it? Generally all new builds are overpriced, the scheme you buy with (if at all) is completely irrelevant. Also the bank will only lend on what they feel a property is worth, not what a builder says it his.

    Sorry I can't be more help!
  • I don't think you need a deposit but actually getting accepted onto the scheme is a different matter. Everyone is after them so they become over subscribed almost immediately.

    http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_171504

    Good luck!
  • sgh1976
    sgh1976 Posts: 424 Forumite
    Part of the Furniture Combo Breaker
    kinglewis wrote: »
    I don't think you need a deposit but actually getting accepted onto the scheme is a different matter.
    !


    You didn't, you do now.

    At the start HBD had 3 banks behind it. RBS, Halifax & Nationwide.

    Nationwide quickly added a 5% deposit on top of the HBD deposit.
    Halifax added this rule at the start of September
    RBS added it last week.
  • Thank You for all your comments :o
This discussion has been closed.
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