new to buying a selling property

Poppycat

We bought our first house many tears ago. We have bene wanting to move for many years and we are now in the position to sell and buy fingers crossed soon. We have been accepted for a homebuy (shared ownership) and have it in writing in a letter from housing association, we will buy on the normal open market.

We are going to a lender on Monday to see what we can borrow and then plan to put house on market next week and look for alternative housing we have some leaflets on houses we got from EA and also looking on there web sites.

We are pushed for time as we have only 2 months or at least show to housing association we are serious in moving forward. I couldnt apply first week as daughter just come out of hospital and last week we had to sort out a time to see BS as we cant go to any old BS, only Nationwide, Advantage, and Yorkshire BS. None of them will do this locally I have to go 50 miles away.

Am I going about it right? we really in need new housing as my daughter has just had a op and shes wheelchair bound, both our girls share a small bedroom. I just wnat them to be able to spreda there wings, and after last week when so prat ploughed into my car and didnt stop, I cant wait to get out.

Thanks

Doozergirl

Hello Poppycat,

I'm sure if you used a broker, they would be able to offer you the best deal from the three Building Societies you are able to use. You could try asking on the mortgage board; at best it would save you many miles of travelling and get you the best deal when you obviously have your hands full.

I'd also get your house on the market as soon as you can, don't bother waiting. If someone is interested in your house straight away they will wait for you to find somewhere.

Presentation is key to getting the best price. You're going to have to have a big clear out when you move, so it's best to do it now so your house is as clear as possible for viewings.

lynzpower

Abbey do shared ownership mortgages as well, thats who mines with.

I agree, your best place to see an all of market broker, especially as you havea need for whats on the face of it a specialist mortgage, but there are a surprising amount of products about to cater for them. Additionally brokers will get access to rates you wont get from the bank direct, and as they are independent, a product that suits you. ( well as much as a mortgage suits anyone! )

All the best

Poppycat

Thanks guys I am not sure if I can go to a broker although if I can it certianly worth thinking about.

The problem I see is this

My morgage comes in parts

1. Equitity from my old house as a desposit
2. 12.5% interest free from the BS for 5 years before interest is paid at 3% and if house increase they may have 12.5% of the value of that increase
3. Government will own 12.5% of the house paid back when I sell.

Will brokers need paying or do they get paid a fee from the BS for selling?

I just wondered because I just about can make it with some help from family for moving costs and selling.

Doozergirl

Most Brokers get paid their commission directly by the lender, as would an in-house mortgage advisor.

I think if it's a small amount or a particularly difficult case or a small amount, they have to charge but again, there must be one lurking around here somewhere that can help!

Poppycat

Oh thanks I am a little worried because from what I can see I can get 12.5% from the government paid back when I sell the house including if it increases in value plsu a loan from the lender of up to 12.5% and acrues interest after 5 years of 3% plus 12.5% of the difference between what the house is was orginal bought and sold at a later stage. I also cant pay the loan in small increments only in what lump sum.

I suppose it woudl cost me more should house prices increase more.

Poppycat

The plot thickens.

I been to my morgage lender who runs the homebuy and they told me that from theer understanding any equity we have will erode the government equity loan, as we will have about 60% from the sale of our house we may not have enough to get the property value that we are looking for.

However we can get a new normal morgage but we wont be bale to get the same type of house in the area we wont in unless we can find something that is being sold cheap, which is a shame as we liked to move in that area of our town, close to my mother and MIL.

I am hoping I can get clarification from the housing asscoiation who are agents for the homebuy scheme.

To clarify things we will have about £85,000 from the sale of our 1st house, and we are looking for a house around £150,000+

We dont have much money coming in and as we can only realistically get a morgage for 20 years. The morgage lender will lend us £145,000 on 20 years, we can just about pay the payments it will be tight.

I am just so desperate to move because the hous is now too small for us gorwoing family and we have a child with health problems

lynzpower

poppycat, well yuou wouldnt have to find that muhc money. would you?

Im trying to understand the figures ( im in SO, not homebuy, nad Ive never truly understood how HB works)

property costs 150
you have 85
missing 65k

So therefore youd need a mortgage of just 45k. Monthly payments ( off top of head estimate) would be something like 150 quid a month, but I recommend to get the shortest term possible, and save yourselves a fortune in interest.

How much is the property that you are looking at?

Poppycat

Hi, I am interested in £160,000 property max. I been told they will lend us £60,000 on top of the £85,000 we may get for our property leaving us a little shorts that's over 20 years, I think it was around £500 per month which is max we can afford really.

I don't move much this will be our 2nd house and don't plan on moving again until after retirement which will be by the end of the life of the mortgage.

I may get more for my house but it will probably a few grand, house down the road went for £105,000 and we have more on offer, double glazing, patio doors (new) extension to kitchen etc. It may also we can get the house we like down a few grand but we will still be 10 grand short.

Perhaps it wasn't to be, at least I can get something for in my price range, and at the end of the day it will be ours. Thanks