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Homebuy housing scheme
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Poppycat
Posts: 19,913 Forumite


I got accepted for the homebuy scheme last week but due to problems with my daughter I couldn't get the motions set until today.
I narrowly missed out on this scheme back in April then you get a mortgage of 75% and the government provide the 25%. When you sell your house they take 25% of the property, which would in most cases increase in value.
The scheme is now 75%, a 12.5 interest free loan from approved provider (Bank of Scotland, Nationwide and Yorkshire Building society) for 5 years and a 12.5% interest free loan from government which is paid back when you sell.
Well today I ring providers up, Bank of Scotland don't run it until end of the year, Nationwide doesn't seem to have a clue what it is, I been handed around from pillar to post. Yorkshire Building society (very friendly on phone) have to travel to a branch 50 miles away even though I live in a big town and has a local branch. At least they knew what it was.
I have two months in which to get a mortgage, sell me house and find another according to the letter from housing association.
Has anyone else going through this? I am already fed up of living where I am, having a unsuitable house for a disabled child, and thinking why bother, it sounds so stressful.
Sorry to rant
Also have to add that when I was approved I had to previously show my income and value of my house with 3 estate agents quotes in writing. This is why I missed the boat because 1. Most in my area charge 2. Those that didn't only one would put in writing, another said they would but never did, the rest said there's a charge of hundreds for a piece of paper saying your house is worth X amount. I am also on a housing association waitinmg list but stand no chnace of gettting a suitable house even with being a local, overcrowed and illness/disability in the family.
I narrowly missed out on this scheme back in April then you get a mortgage of 75% and the government provide the 25%. When you sell your house they take 25% of the property, which would in most cases increase in value.
The scheme is now 75%, a 12.5 interest free loan from approved provider (Bank of Scotland, Nationwide and Yorkshire Building society) for 5 years and a 12.5% interest free loan from government which is paid back when you sell.
Well today I ring providers up, Bank of Scotland don't run it until end of the year, Nationwide doesn't seem to have a clue what it is, I been handed around from pillar to post. Yorkshire Building society (very friendly on phone) have to travel to a branch 50 miles away even though I live in a big town and has a local branch. At least they knew what it was.
I have two months in which to get a mortgage, sell me house and find another according to the letter from housing association.
Has anyone else going through this? I am already fed up of living where I am, having a unsuitable house for a disabled child, and thinking why bother, it sounds so stressful.
Sorry to rant
Also have to add that when I was approved I had to previously show my income and value of my house with 3 estate agents quotes in writing. This is why I missed the boat because 1. Most in my area charge 2. Those that didn't only one would put in writing, another said they would but never did, the rest said there's a charge of hundreds for a piece of paper saying your house is worth X amount. I am also on a housing association waitinmg list but stand no chnace of gettting a suitable house even with being a local, overcrowed and illness/disability in the family.
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Comments
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If you phone your Local Homebuy agent they will put you in touch immediatly with a registered IFA. The Nationwide Mortgages are available but only through recognised Homebuy Brokers.If you don't get what you want - you'd better hope you want what you get
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks. I rang my homebuy housing association but am awaiting a return call.
I dont think 2 months is long enough I move tommorow if I could0 -
Is anyone else buying under the homebuy scheme.
I am also wondering because we did a 3 bedroom house which will start from £125,000+ whether we would pay stamp duty, as we actually would only own 75% of the house, the rest 12.5% to teh government and 12.5% morgage lender until paid.
Money is very tight but we are so desperate to sell and move0 -
Poppycat wrote:Thanks. I rang my homebuy housing association but am awaiting a return call.
I dont think 2 months is long enough I move tommorow if I could
I think you should talk to the homebuy association again and explain the situation.
I am in a very similar situation to you (although not as far down the line). They explained to me that in my area they like you to complete within twelve weeks but in special circumstances (which you are) as long as they know you are on the ball and not sitting around doing nothing then there is some flexibility.
i woud advise keeping in close contact with homebuy and keeping them informed every step of the way.
Good luck and hope it works out.0 -
Thanks dps, I managed to speak to them late yesterday. There is some flexibility as long as you can show that you are making progress but not yet complete.
I have made enquiry about stamp duty exemption and it seems as it is a shared ownership I may be exempt as I would in effect only own 75% of the purchase price assuming the house minus shared ownership is below the £125,001
Thanks and good luck to you too.0 -
The demand might well outstrip the supply - initially between now and next April £40millions have been allocated between all the HBA's - some are only planning on say 30 purchases and it should be noted that this is a 18 month pilot scheme. So keeping in touch is indeed crucial.If you don't get what you want - you'd better hope you want what you get
I am a Mortgage Adviser
You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it.
This signature is here as I follow MSE's Mortgage Adviser code of conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I spoke to housing association yesterday I wondered why the scheme had changed, back in April the government paid 25%, but now its split 12.5% government and 12.5 interest free equity loan for first 5 years. He said that it would help more people but its actually doesn't help as much as previously.0
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i did homebuy 4 years ago with a 75% mortgage and 25% interest free loan from HA, payable at current market value when i sell.
unforatunately i had to pay stamp duty0 -
after reading this thread i was wondering how easily people have found it to be accpeted on this new homebuy scheme, as we are FTB but cannot get a mortgage high enough for any properties in our area, we also are accpeted on shared ownership scheems but they seem to be too slow in building these homes. any comments on how you found the process and whether you think it was a good path to take would be appreciates. Thanks0
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