Homebuy Direct!

Benno1983

Hi All,

My Girlfriend and I are looking at moving in with each other this year. We have had a look at the Homebuy Direct Scheme. This looks the most appealing to us both at the moment. We have had a look at a few properties recently. The value being £165000. I've spoken to a financial advisor and they have said that this will be a comfortable and affordable price for both us. I am currently on a fixed permanent contract as well as my girlfriend. Our combined income is £36000. Do you believe that we will be successful in gaining a mortgage?

Any Help would be beneficial.

MANY THANKS

catfood_2

if you have a reasonable credit history then it is well within you range... good luck.

brit1234

wouldn't be better to wait six months and save a deposit. As you can see prices are set to start falling again now the stimulas is gone and rates are going up.

Homebuy scheme is also designed to make people over pay for property, check the BBC documentry on it.

Benno1983

We have a deposit of £5500 which includes legal fees and stamp duty. My girlfriend is on a fixed 1 year contract as a teacher and i am on a 6 month fixed permanent contract. Would this knock us back that we do not have permanent positions. Both have excellent credit ratings.

thanks

Muhasib

Benno, I'm not sure what a '6 month fixed permanent contract' means, are you on a fixed term contract for 6 months or a permanent contract ?

Anyway the Homebuy Direct guide does say that applicants should be employed on a permanent contract but then adds in brackets "there are exceptions for key workers".

In terms of affordability at £165k the guideline would be a single income of at least £29,250 or joint income of £33,000 looking at the information I got from the local Homebuy Agent.

As both RBS and Halifax started asking for 5% deposits on their shared equity mortgages, it would mean you need to save more for the deposit (£8250) and then have money as well for fees, stamp duty(paid on the total transaction value, not on the value of your share) and all the other transaction costs.

Obviously as brit1234 advises mortgage rates will increase, but no one has a crystal ball to forecast when and by how much.

I'm sure you'll do a full read and clearly understand how the scheme works and possible outcomes before you decide to leap, it will suit some but certainly not everyone's circumstances.

poppy10_2

1. Shared ownership is a scam
2. Your deposit is too low
3. Your income is too low
4. Your income is not stable enough

Avoid.