Firstbuy - any success stories?

lnbr32

Am currently awaiting approcal on the Firstbuy scheme for a new build flat. Has anyone done this before and got further than me? Has anyone actually succesfully got an approval letter from the shceme? Would love to hear from anyone who had.

robrymond

Also waiting for confirmation, we're .6% off the target percentage that is required for FirstBuy, unless we put down a larger deposit which would be a worst case scenario. Depends if they are feeling generous really! Ours is for a 3 bed semi house

kingstreet

lnbr32 wrote: »

Am currently awaiting approcal on the Firstbuy scheme for a new build flat. Has anyone done this before and got further than me? Has anyone actually succesfully got an approval letter from the shceme? Would love to hear from anyone who had.

Have you got a lender in mind for the mortgage? The maximum loan to value for a newbuild flat has dropped dramatically in the last couple of years. 65% is around normal today.

simondh_2

We have got an approval letter, only took a few days to come through.

herpderpingstein

I've received the approval letter from FirstSteps, the scheme for London. Still looking into it being a worthwhile venture.

Though I do not fancy my chances of saving a deposit while paying London rental prices!!

robrymond

Still waiting for our approval or refusal. We need to get the ball rolling before 2nd September as that is when the reservation ends. Not only that but we are awaiting the outcome of the mortgage. It sounds like the difficult one will be the Firstbuy approval though as we're outside the percentage quartile.

If it does fail, then we will have to re-submit with a higher deposit.

lnbr32

Just an update seeing as I asked the question - we got refused, or I should say only got offered a 90/10 split (rather than the 80/20 the scheme promises) as - get this - it was TOO AFFORDABLE! Was totally disgusted as the advisor tried to get us to get a more expensive house or to 'take out a loan costing £125 per month' otherwise we had too much leftover income! The flat is 179950 and our joint income is 56k and they said our salary was too high compared to the mortgage we would want of 145k. Ridonkulous! They are just trying to push people to their limit.

DVardysShadow

With salary of 56, you should get a mortgage for 168, quite easily, which at 90% LTV means that you could buy up to 187.

I would suggest that your real problem is probably a lack of savings. I would expect you to be bringing 20K to a purchase, minimum. Other than a lack of savings, I don't see any impediment to buying on the open market [unless you have poor credit]. Really, these schemes are not for you.

robrymond

We got approved today, however it was touch and go. It has taken a number of weeks, and they did say that we had 'excess deposit' money which they questioned, however this is for furnishings and any other moving in costs, rather than it being 'affordable' for a full price property.

You could contest potentially? Or save the bit extra? Good luck!

lnbr32

Thanks DVardysShadow, yes thats the plan again now, we actually had 25k savings so werent going to need the scheme but, as happens, life gets in the way and we had to deplete our savings so we only have 12k left which in our area wouldnt buy a sandwich let alone a deposit! Just a further update for anyone interested but we got an email today saying even though they offered us a 90/10 split yesterday theyve revoked the offer today , and I quote, as 'it is still too affordable'.

TonyHoyle

I've just got an email from firstbuy saying " The current figures we have mean that the application fails on 80/20 split of your chosen property but passes if you purchase on 90/10% basis"

What does this mean? Is this good or bad? I was planning to go for a percentage that meant I could save for a deposit in less than a year - which given the high rents around here is probably only about 4k.. Are they saying that I'd have to pay 90% with a 10% deposit? That'd be about 18k! I've never seen that much money in my life...