homebuy direct advice please!

brit1234

As said above the scheme is designed to keep prices high. After the election the funds for this dry up and prices fall.

The schemes keep prices high denying people buying the normal way

BBC did a report on the scheme saying how dangerous it is, however it mayt be ok if you want to pay the extra costs and not thinking of moving for a very long time.

Muhasib

brit1234 wrote: »

As said above the scheme is designed to keep prices high. After the election the funds for this dry up and prices fall.

The schemes keep prices high denying people buying the normal way

BBC did a report on the scheme saying how dangerous it is, however it mayt be ok if you want to pay the extra costs and not thinking of moving for a very long time.

Have you got a link to the BBC report Brit1234??

You must be mellowing if you are now stating that the scheme may be ok in some circumstances!!

soul619

hmd1987 wrote: »

no way we could save up like 30k.....

isnt that what you have to do anyway? i looked at this with my partner and was told the 20% to 30% had to be paid back within 10 years anyway so thats just like saving up for it so if this is the case you have just said you cant do it..

on a 150k mortgage, 30% from the homebuy scheme thats £356.25 on top of your mortgage into savings with paying a 5% deposit from the total value so that you can pay the remaining 30% back at the end of 10 years

bodgerx

muhasib wrote: »

Have you got a link to the BBC report Brit1234??

You must be mellowing if you are now stating that the scheme may be ok in some circumstances!!

This poster always seem to reference this BBC report, yet no link...

Muhasib

soul619 wrote: »

isnt that what you have to do anyway? i looked at this with my partner and was told the 20% to 30% had to be paid back within 10 years anyway so thats just like saving up for it so if this is the case you have just said you cant do it..

on a 150k mortgage, 30% from the homebuy scheme thats £356.25 on top of your mortgage into savings with paying a 5% deposit from the total value so that you can pay the remaining 30% back at the end of 10 years

Who says that this has to be repaid by the end of ten years?

I have just looked again at the HBD buyers guide, the illustration at the bottom of Page 12 shows the fees payable each year up to the end of year 10 at an RPI of 5%, it does not say that it has to all be paid back at the end of that period - though it might be better to consider at least some repayment as the interest rate increases at RPI + 1% of the previous years rate.

brit1234

bodgerx wrote: »

This poster always seem to reference this BBC report, yet no link...

Thats because I have put it up before loads, here is one.

http://news.bbc.co.uk/1/hi/business/7613781.stm

hmd1987

perhaps you are looking at another scheme...the Homebuy Direct scheme does give you the 30% loan, and there is no time scale on when to pay it back. The first 5 years are interest free, and every year after that, starting from 1.175% the interest goes up by 1%...... Then if you sell the house, without paying anything back, 30% of the total proceeds (whatever the price of the house) goes back to the scheme.

In fact if you really wanted, you could stay in the same house until you die, and never ever pay it back...

the scheme is a government scheme and we were assured that it would still continue after the election, regardless of the results...and also even if the scheme goes bust, or the builder goes bust (ie redrow, barratt homes etc) - they can never come after your home or try and persuade you to give them the money. Its shared equity rather than shared ownership which makes it quite a good deal

yes i understand that you end up paying back 30k ish for the 30% loan, but that can take 5 or 6 years to save up - i shouldnt be expected to pay dead money in rent, just so that i can save up the money to buy it outright

everyone is entitled to their opinions, regardless of whether its right or wrong. At the end of the day, the scheme works very very well for some people, myself included

katelu

Hi all,

Just wanted to say I have been in my homebuy direct scheme house for 7 months now and have been very pleased with the way it all went. I wouldn't worry too much about any od (mine was at 6K overdrawn when I applied!) they just want to see that you have funds coming into your bank account. (And before anyone starts I know it was risky to buy a house with big debts but my morgage is £200 less than my rent was so my debts are reducing significantly).

The key is to get yourselves a good mortgage broker and a good solicitor and to keep ringing them ALL THE TIME. I paid a deposit on my house and moved in 4 weeks later due to this:rotfl:. My split is a 70/30 split with the outstanding "loan" at 30K. I'm hoping to pay this off within 10 years but as others have said there is no time limit to paying it back so I'm not worried.

Those who complain about these schemes affecting the housing market - you're probably right but as these schemes have been around since the 70's do you really think they are going anywhere? Also do you really think that if they did all disappear that house prices would fall? Would the government really put millions of people into negative equity? Honestly? Get in the real world please!

Muhasib

brit1234 wrote: »

As said above the scheme is designed to keep prices high. After the election the funds for this dry up and prices fall.

The schemes keep prices high denying people buying the normal way

BBC did a report on the scheme saying how dangerous it is, however it mayt be ok if you want to pay the extra costs and not thinking of moving for a very long time.

thanks for providing the link, the report is from 13th September 2008, it is commenting on the builders schemes available at this time and only mentions at the end of the report that the Government is launching its own scheme (which would be referring to Homebuy Direct). Therefore it is factually incorrect to state -

"BBC did a report on the scheme saying how dangerous it is"

I would think that the report is very useful viewing to give a sceptical view to prospective applicants of the overall issues that may arise but it isn't about HBD.

sgh1976

hmd1987 wrote: »

In fact if you really wanted, you could stay in the same house until you die, and never ever pay it back...

Is that true? I thought you paid it back when you sold or have lived in the property for 25 years