homebuy direct advice please!

soul619

muhasib wrote: »

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.

thats what they told me when i inquired about it, i was told you could pay of bits through out the 10 years but it all had to be paid by the end of that

hmd1987

the person we spoke to at Redrow homes said about the never paying back....there is definitly not a 10 year period that it has to all be paid back by

soul619

hmd1987 wrote: »

the person we spoke to at Redrow homes said about the never paying back....there is definitly not a 10 year period that it has to all be paid back by

thats fair enough but the one we looked at with barrett homes there was, it was there in black and white in the info they gave us and was the reason we didnt take that option

bodgerx

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.

"The Law Society says schemes offered by housebuilders to help first-time buyers could leave them unable to trade up when they come to sell."

hmd1987

soul619 wrote: »

thats fair enough but the one we looked at with barrett homes there was, it was there in black and white in the info they gave us and was the reason we didnt take that option

Are you sure it wasnt the "Head Start Scheme" -

How does the Head Start scheme work?
5% deposit payable by purchaser. Mortgage finance is arranged on 80% of the purchase price. The remaining 15% is an interest free loan that you don’t have to pay back for 10 years or when you sell or transfer your home, whichever is sooner.

SelbyJay_2

AbsoluteReturn wrote: »

Coco, don't mean to rock the boat but why do you want to buy a portion of a house? ...... and house prices will fall to a level where you can buy on your own.

As if! If you seriously believe that prices are going to drop THAT much then i think you are seriously deluded.

brit1234

SelbyJay wrote: »

As if! If you seriously believe that prices are going to drop THAT much then i think you are seriously deluded.

Actually I think it is you who are deluded or is it my imagination that the BOE had to cut interest rates to 0.5% to prevent amagadon in the housing market.

Prices will come down to affordable levels.

Eric1

SelbyJay wrote: »

As if! If you seriously believe that prices are going to drop THAT much then i think you are seriously deluded.

right, delusion is a good word to describe what some sellers are doing in my area, asking prices set at 2007 peak +10% reward for sitting on their bums. Guess how many are selling

TartanBeanCounter

brit1234 wrote: »

Actually I think it is you who are deluded or is it my imagination that the BOE had to cut interest rates to 0.5% to prevent amagadon in the housing market.

Prices will come down to affordable levels.

My partner and I have just reserved a property on the Homebuy Direct scheme and saw it as a no brainer compared to renting forever and a day. Our reason for doing this was to create a greater sense of security for ourselves and family instead of being at the whim of our private landlords (7 moves in 15 yrs of which 3 were in the last 2 yrs, not good!) who move you on when their circumstances change or they see greater yields in other investments.
Although we looked at homeowership in this way, we have considered what will happen to the housing market and how this will impact on us and what effect this sort of scheme has.
In short this scheme puts up to 30% of the risk of equity loss onto the developer and government should prices fall leaving the buyer at risk of losing only their deposit, which anyone would in a negative equity situation. Therefore, we believe that no one should be frightened of this scheme as it does afford some protection, if that is what you are looking for.
As for what will actually happen to the housing market? Well, I suspect that the cautious commentry such as those above is absolutely right if only we were in a truly free and open market situation. It would seem to me that we are not and without removing things like, right to buy, freedom to build anywhere and anything AND schemes such as Homebuy then this country will never be able to cope with housing demand. Equally, we have seen on the back of the intervention taken by governements here in the UK and internationally that intervention works? At least there is the illusion that it has worked so far? and thus will encourage future interventions I think. Thus I fear, (because I think that you must allow the market to either dictate what happens or manage it entirely, not attempt both) that prices will not fall as dramatically as they might otherwise have done and ironically as a result we may benefit or at least certainly no be put in a worse situation. Of course where does this leave my children in 10 yrs time what will they have / do?

Muhasib

very sensible 1st post Tartan - I hope you keep the forum updated and not wait another 3 years before you post again!