My Homebuy Direct experience

tb1105

Despite all the negative comments, this scheme is really helpin me and OH get our own home. I am 23 and hubby is 24. I am a teacher and he is a laboratory technician also doing a biomedical science degree.

In December, the house was advertised through Persimmon on a local development, we reserved it the same day.
The house was advertised at £189,995. We negotiated £185,000 with carpets, laminate, upgraded bathroom and turf. Surveyor went in and valuation came back at £180,000. Persimmon held out for a bit and appealled but no change. They agreed to sell to us at £180,000 with no extras, we said we'd walk away with no carpets so we agreed on £180,000 with carpets and vinyl included.

Halifax are supplying our £140,000 mortgage on a 2 yr fixed at 4.01% with a £7,100 deposit (just 5%). We have a loan for £40,000 from the scheme which is interest free for 5 years, then we will pay £55 a month if nothing is paid off. We have 25 years to pay it off.

The house was supposed to be completed mid march but due to all the snow we had it has been put back. It has been great seeing it being built, shoosing our work surfaces, cupboards and carpets. The house has been rendered this week, we are going in for our first viewing next saturday and will be in within the last 2 weeks of april.

We can't wait!! It is a 3 bed terraced with garden, garage and 2 parking spaces. Being a 3 bed means it will be our home for a long time yet :j :j Just can't wait to get in! We have been very lucky with stamp duty being scrapped saving us £1,800, the completion has been put back giving us 2 extra months of savings and with all the easter sales we are saving hundreds on electricals and bits and bobs :beer:

Watch this space!!

Desperatetobuyahouse

Thanks for that post, was nice to hear some first hand feedback! My boyfriend and I are looking into the scheme at the minute and saving up for our 5% deposit. Also good to know that the house prices are negotiable...

Was just wondering how much on top of the deposit you are estimating to have to pay out in terms of solicitors, being assessed by financial adviser etc? Trying to estimate when exactly to take the plunge!

cocomonkey_2

It's great to hear it's all working out for you. We are at the beginning of the process and am a big ball of anxiety. Our FA is coming round next week to collect our documents and make the mortgage app for us. Can I ask how smoothly the mortgage application process went for you? Did they query much on your bank statements or ask questions?
Also how long did the whole process take for you until contracts were exchanged?
Any advice much appreciated

Coco

tb1105

hi guys,
You have to use a FA that is on the recommended panel for the scheme - we were pointed in the direction of Threshold mortgages who found Halifax gave us the best rates for our mortgage.

The mortgage went well - we handed in 3 months bank statements, pay slips and proof of address. I only had 2 months bank statements and it was accepted. We got our mortgage promise quickly but had some issues on our credit report (sign up to equifax now and make sure you clear any errors!) but once these were sorted we received out mortgage offer. We had to wait for south west homes to give authority to exchange which took a while, there are 3 different people you are dealing with (the builders, the homebuy agent and mortgage company) which slows it down but keep nagging and it does pay off!

We saw the house on 22nd dec and reserved, mortgage was approved end of jan, mortgage offer through mid feb. We exchanged contracts last week (end of march). The house is 6 weeks behind schedule but this has given us 2 months extra savings and of course stamp duty has been cut :beer:

Our outgoings have been:

Surveyor valuation £355
Reservation fee £500 (comes off mortgage on completion)
5% deposit £7,100 (our mortgage is £140,000)
Solicitor is around £1,000
£745 for mortgage fees but have been added to the mortgage so we don't pay it outright
Extras we have ordered from Persimmon £700 (turf, upgraded shower and glass panel...) not payable until completion
Carpets and vinyl included

Our mortgage is £780 pcm. In year 6 if we haven't paid any of our loan off it will be about £55 pcm interest, increasing by about 1% of that £55 per year.

tb1105

Jan



Feb




Yesterday!! (April)

carefullycautious

:silenced: Id better not comment

poppysarah

So you borrow 100%?

Sounds like it can't fail.

55 a month for up to 25 years on 40k ... sounds a bargain...
Shame they couldn't just sell you the house for 40k less

DVardysShadow

tb1105 wrote: »

Despite all the negative comments, this scheme is really helpin me and OH get our own home. I am 23 and hubby is 24. I am a teacher and he is a laboratory technician also doing a biomedical science degree.

In December, the house was advertised through Persimmon on a local development, we reserved it the same day.
The house was advertised at £189,995. We negotiated £185,000 with carpets, laminate, upgraded bathroom and turf. Surveyor went in and valuation came back at £180,000. Persimmon held out for a bit and appealled but no change. They agreed to sell to us at £180,000 with no extras, we said we'd walk away with no carpets so we agreed on £180,000 with carpets and vinyl included.

Halifax are supplying our £140,000 mortgage on a 2 yr fixed at 4.01% with a £7,100 deposit (just 5%). We have a loan for £40,000 from the scheme which is interest free for 5 years, then we will pay £55 a month if nothing is paid off. We have 25 years to pay it off.

The house was supposed to be completed mid march but due to all the snow we had it has been put back. It has been great seeing it being built, shoosing our work surfaces, cupboards and carpets. The house has been rendered this week, we are going in for our first viewing next saturday and will be in within the last 2 weeks of april.

We can't wait!! It is a 3 bed terraced with garden, garage and 2 parking spaces. Being a 3 bed means it will be our home for a long time yet :j :j Just can't wait to get in! We have been very lucky with stamp duty being scrapped saving us £1,800, the completion has been put back giving us 2 extra months of savings and with all the easter sales we are saving hundreds on electricals and bits and bobs :beer:

Watch this space!!

Heartwarming to see gratitude for being swindled by excessive house prices and greedy builders.

tb1105

I am not going to argue about it, my hubby and I think it is great that we can buy our own home. The house is worth what we are buying it for or the bank wouldn't lend us the money.

They can be as greedy as they like, we are happy to spend our hard earned money on it, its not just a house, its our home.

The scheme works well as long as you don't leave the government loan unpaid, we are both in great jobs so as our pay goes off, we will pay off the loan. We also have the option to remortgage at some point or sell the house to pay it off.

The house next to us is also another couple buying on homebuy. Without this scheme we'd be in a flat.

Eric1

tb1105 wrote: »

Our mortgage is £780 pcm.

tb1105 wrote: »

Without this scheme we'd be in a flat.

If I may ask, what is the average monthly rent for a similar 3-bed in your area?

cocomonkey_2

TB - I agree with you on this totally. There is a lot of smug negativity on here from people who have managed to buy their home in the past without any problem whatsoever. You sound like you are in exactly the same ridiculous situation as me and my fiance - earn good money, are good candidates for a mortgage but can't get one without a whopping deposit. It would take us at least three years to save the deposit asked of at the moment and as time ticks on we are sick of renting and really want a home to call our own. We are in the early stages and know all the risks but as you say you have a plan in place to make it work for - as do we - I am praying our experience runs as smoothly as yours. Good luck and it will all be worth when you are all cosy in your new house.