Help and advice on Mortgages/buying a house

Jenniefour

pjgoober wrote: »

I have no idea about the detailed terms etc.

One of the reasons it appeals is that £500 is not significantly more than my rent on a crappy 2 bed house in a horrible area. So even if it's not a great investment, it's a better deal than throwing it away on rent? No?

Please step back and give this some very careful consideration indeed - and find posts on here from others who bought into these schemes and are now in big trouble and effectively stuck unless they want to sell at a loss.

Your words above indicate that you are perhaps mainly thinking short term - this proposal needs you to take a much longer term well informed view. It's about your future and you future financial position. What might look like an immediate good deal re rent vs mortgage payments is less important than what might happen over the much longer term - property prices falling (as they are now in most places), concerns about the economy and job losses. Not least the restrictions that often come with shared schemes, which often manage to put the buyer - you - as the one who is taking the lions share of the future risk and also put restrictions on your options which do not exist if you buy outright.

What's the rush? Wait, save up to get a decent deposit together whilst prices continue to fall and be in a good position to buy outright later on where you are much, much less likely top be realising in a couple of years that you have given yourself a millstone around your neck.

As you can gather, I am no fan of these schemes - far too many stories on here from those who have done it and it's turned out to be disastrous.

pjgoober

CloudCuckooLand wrote: »

Plenty of reading up to do;

Visit the developers website, they may have an outline of how the scheme works. edit, crossed with yours.

FA/Brokers vary in quality. Even the good ones get caught out by sudden changes to Lender's criteria. Lenders will issue an "agreement in principle" then decline the application on fuller investigation. Some threads here indicate supposedly "fully approved" mortgages being pulled by Lenders who have a change of mind. So, there are no guarantees.

I've checked my Credit rating (thanks for the tip) and other than a warning of late payments on a credit card 5 years ago, when I was a student, it is completely clear. I'm right in thinking that that is unlikely to be a problem?

Stalkdog

If you haven't read the following thread, then it's worth a read.

"Interest only mortgage shortfall, Help please"

Even if it's not your exact circumstances, it shows that this is not the kind of thing to be jumping into without VERY careful consideration! If you haven't thought about house buying until a few days ago, then you have a huge amount of reading and careful thought to do. Remember that the housing market is very challenging at the moment, and you can easily get unstuck with consequences that will last a long time, possibly a lifetime.

Good luck

pjgoober

Jenniefour wrote: »

Please step back and give this some very careful consideration indeed - and find posts on here from others who bought into these schemes and are now in big trouble and effectively stuck unless they want to sell at a loss.

Your words above indicate that you are perhaps mainly thinking short term - this proposal needs you to take a much longer term well informed view.

No I would definitely only do this if the house was one I intended on staying in for a long time. My job isn't likely to go anywhere (I don't think) and neither is my Fiancees. Both of us are qualified enough that we should be able to get other work in the area (and it is a good area for work) should either of us get made unexpectedly redundant.

Ideally I'd be talking about staying for the term of the mortgage, like I said, I haven't seen it, but I wouldn't buy it if it wasn't sufficient for our future family.

CloudCuckooLand

All 3 credit agencies, in 20 mins, blimey...
Equifax (instant, see below), Experian (takes 4 days), Callcredit (instant, see below)

pjgoober wrote: »

I'm right in thinking that that is unlikely to be a problem?

CloudCuckooLand wrote: »

So, there are no guarantees.

adwat

Just google "shared equity problems" :

http://www.investorschronicle.co.uk/MarketsAndSectors/Sectors/article/20090310/92eb00c8-0c8b-11de-ba1c-00144f2af8e8/A-problem-shared.jsp

http://www.thisislondon.co.uk/standard/article-23529109-our-shared-ownership-dream-home-turned-into-a-disaster.do

http://www.thisismoney.co.uk/mortgages-and-homes/article.html?in_article_id=450845&in_page_id=8

http://www.firstrungnow.com/shared-equity-mortgages/

Not something I would go for - unless you want to live there for 30 years.

pjgoober

Stalkdog wrote: »

If you haven't read the following thread, then it's worth a read.

"Interest only mortgage shortfall, Help please"

Even if it's not your exact circumstances, it shows that this is not the kind of thing to be jumping into without VERY careful consideration! If you haven't thought about house buying until a few days ago, then you have a huge amount of reading and careful thought to do. Remember that the housing market is very challenging at the moment, and you can easily get unstuck with consequences that will last a long time, possibly a lifetime.

Good luck

someone on a different forum linked me to that thread, which is one of the reasons I'm asking here (I always forget this place has a forum)

It's very different circumstances to that thread, but I take the warning. I am very carefully considering this and trying to ask the right questions and find out whether this is a good thing to be doing.

It's certainly less clear cut than I was expecting!

pjgoober

CloudCuckooLand wrote: »

All 3 credit agencies, in 20 mins, blimey...
Equifax (instant, see below), Experian (takes 4 days), Callcredit (instant, see below)

Wow. You're friendly

Obviously I've not checked Experian, but I'd be suprised if they found out about a loan I didn't know I had, that I hadn't been paying, and that neither of the other two spotted.

I wasn't asking for a guarantee. I was asking for advice whether the people here, from there experiance think it is likely, unlikely or just plain not going to happen.

pjgoober

adwat wrote: »

Not something I would go for - unless you want to live there for 30 years.

And if we did want to live there for 30 years?

dimbo61

Others have talked about shared equity and the problems of buying 75% of a property!
You need to look at what Barratt want ? Do you have to pay them back after say 10years? or give 25% of the sale price when you sell? any interest payable to Barratt?
As for the property itself ! have you got 2 cars therefore 2 parking spaces or better still a garage