homebuy direct advice please!

Steven--_3

Hi

Does anyone know what the credit requirements are of this scheme?

I was made personally bankrupt 6 years ago, discharged 5 years ago, and have a credit rating listed as, I think, "fair". Everything falls off next summer.

I just wondered if it was worth making an application as there's some nice stuff nearby to here. I have a salary of 48k and savings of around 10k, aiming to be about 20k savings by next summer to buy outright assuming I can get a mortgage

SaverEmma

I am interested in using the Homebuy Direct scheme to get onto the property ladder. I went to look round a really nice flat today but was told the government were withdrawing the scheme from the market in September Any ideas how to take this? Im £2k short of the amount needed for the 5% deposit and fees etc but could probably just about scrape that together if I had to. Is it worth rushing a homebuy purchase through? Or should I stick it out until I am fully financially prepared (if that ever happens!). Any suggestions would be gratefully received although I appreciate its a gamble either way.

lizzak

Hi guys,

Im interested in using the HomeBuy Direct scheme, but i dont know much information on it.

I emailed my local home buy scheme and theyre sending me out some information etc for me as they believe i may qualify.

What it is, i only have £1600 saved up, can only get a mortgage for £83k from the bank - just doing this soley on my own. Would i still need to save up for a deposit with this scheme to get a mortgage or would the equity loan be enough that the homebuy direct scheme give you?

Thanks,

Liz

Muhasib

Liz

Originally HBD didn't require a deposit but the mortgage providers who were prepared to advance to the scheme then started to require 5% deposits so while the scheme doesn't require you to provide a deposit the mortgage lender is likely to require it.

With £83k advance you would be looking at just under £129k approx as the full price if they offer 30% contribution (£38.5k) and a 5% deposit (£6.5k). Does the £83k figure come from a bank/bs that deals with the scheme (ask them specifically this as many won't).

Don't forget you'll need £2k minimum for all the unavoidable transaction costs (valuation fees, solicitors, arrangement fees) and assuming you have all the furniture and stuff already and do your own removals.

lizzak

Hi Muhasib,
I dont know if my bank deals with this scheme, i enquired a few months ago as to how much they may possibly lend me thats when they said max £83k. my bank is HSBC so i dont know if anyone else knows about if they do? IThis was all beffore i found out about HBD.

Ive got the majority of my furniture, only things i would need are white goods. I was planning on using the £1600 i have saved up to go towards the solicitors fees etc, then asking my mom n dad to lend me the rest if i cant get it!

Do you know of any mortgage lenders than dont require a deposit on this scheme?

Thanks for your help,

Liz

Muhasib

Liz

HSBC didn't used to deal with HBD as I asked them specifically about it, they weren't keen on shared equity at all and many of their excellent rates are for those borrowers with large deposits. You'll need to approach HBOS and RBS for definite and maybe Nationwide as your options as to lenders.

Have you been to developments which have property available through HBD ? The developer will likely have their own preferred mortgage broker who will deal with your mortgage application - of course they will benefit from the link but the broker should be more experienced with dealing with Homebuy Direct and know which lenders to approach, I would think it unlikely they will offer 100% mortgage for your equity share.
Even with HBD you may find a property that includes white goods as standard so that may not be something to worry about.
You should be able to find a list of available schemes in your area from the Homebuy Agent (Housing Association) on their website to see what is available.