My Homebuy Direct experience

cocomonkey_2

Also from our experience the house prices aren't excessive - we have got a brand new 3 bedroom in mind on the scheme for a snip compared to what the old houses in the area are selling for at the moment - and it has been hinted at that it will be valued at £10-15k less than the reasonable asking price.

poppy10_2

cocomonkey wrote: »

it has been hinted at that it will be valued at £10-15k less than the reasonable asking price.

By who? ?

tb1105

rent on similar 3 beds in our area is anything between £800 - £1,100 and sold price of similar houses in our area are £180,000 - £200,000 in the past 3 months (nethouseprices.co.uk)

We are fed up with wasting our money on someone else's mortgage and you know nothing about the position we are in.

DVardysShadow

cocomonkey wrote: »

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.

Smug negativity?

OK, the essence of my comment is that anyone should be able to afford a home [that is that homes should be priced to allow you to do this, not that you are a failure if you can't].

Please understand that there is only one thing which sets the price of housing - it is the amount of money people can afford. In general, if houses cost too much, then the price has to come down to prices which people can afford - it is just that there is more friction in the system preventing house prices coming down than there ever is preventing them from going up.

And shared ownership is not the means of enabling you to afford a home in an inflated market. It is actually a way of making you buy less of a house with the money you do have, so you have to come back later to buy the rest. In other words, Shared Ownership is a means of extracting more money from you, not a means of making housing more affordable.

Unfortunately the people least able and willing to understand this are those buying Shared Ownership.

tb1105

homebuy is not shared ownership, we 'own' 100% of the house, its just that 20% of the cost is interest free for 5 years and then on a 1.75% interest rate, much lower than the remaining 75% that is on 4.01% mortgage!

DVardysShadow

tb1105 wrote: »

homebuy is not shared ownership, we 'own' 100% of the house, its just that 20% of the cost is interest free for 5 years and then on a 1.75% interest rate, much lower than the remaining 75% that is on 4.01% mortgage!

And what about the other 5%? It worries me that you don't have a grip on the money involved, although it may just be a typo.

OK, it is not shared ownership. It is still deferred payment. The outcome is the same. It has not made the house affordable to you. Dropping the price to say 80% would have made it affordable. It has just allowed them to get a higher price from you by stretching you in the future, not now.

cocomonkey_2

homebuy is not shared ownership, we 'own' 100% of the house, its just that 20% of the cost is interest free for 5 years and then on a 1.75% interest rate, much lower than the remaining 75% that is on 4.01% mortgage!

Exactly the way I look at is it gives us five years to save up the 20% deposit we would need to buy on the open market at the moment - interest free while in a home we own.

tb1105

Don't get presumptuous with me. The other 5% for your information we have paid. Why do some people on this board think they know best about everything?? Have you dealt or bought through the scheme?? My husband and I know this scheme inside out, we can afford it, we are VERY happy with being able to buy a 3 bed home. How dare you say to me I don't have a grip on money, you don't know me, my situation or my financial situation!!

Yes it has made it more affordable, hence we CAN buy it. We need to move out and this scheme allows us to buy a home we can stay in rather than a pokey flat. I am not here for people like you to tell me you know best about my situation, I am here to share my happiness of buying our first home through this scheme and to show others its not all doom and gloom as people like you make out! Not all of us are able to save for tens of years and buy our house outright, nor are many of us born with a spoon in our mouth or mummy and daddy handing us thousands of pounds so good for you if you don't need schemes like this. Some of us do.

Eric1

tb1105 wrote: »

rent on similar 3 beds in our area is anything between £800 - £1,100 and sold price of similar houses in our area are £180,000 - £200,000 in the past 3 months (nethouseprices.co.uk)

We are fed up with wasting our money on someone else's mortgage and you know nothing about the position we are in.

No, I don't. Enjoy your new home.

However, other FTBs in your area may wish to consider an alternative - renting 2 or even 1 bed house/flat for less, saving more and building up a decent deposit. Depending on personal circumstances, this could be a much better choice financially.

tb1105

thankyou eric, hubby and I decided renting just isn't an option for us, even 2 bed flats are £650 a month so for an extra £100 a month we are paying off interest on our own home rather than someone elses