1st Time Buyer - Co Ownership

Graham727

Hi,

I have recently put down a booking fee on a house with my partner and was hoping to go down the co-ownership route. I have only just found out that you are not allowed any missed or late payments on your credit report for the 12 months prior to applying.

I have 2 banks accounts and don't manage one of them to well and have now racked up 4 late payments this year. Co-ownership say that our application will be rejected outright as I have missed payments in the last 12 months, with one only a couple of months ago.

We have a 6k deposit and purchasing a house at 147k.

Any advice would be grealty appreciated as I am now panicing we will lose the house.

Thanks in advance.

saverbuyer

Graham727 wrote: »

Hi,

I have recently put down a booking fee on a house with my partner and was hoping to go down the co-ownership route. I have only just found out that you are not allowed any missed or late payments on your credit report for the 12 months prior to applying.

I have 2 banks accounts and don't manage one of them to well and have now racked up 4 late payments this year. Co-ownership say that our application will be rejected outright as I have missed payments in the last 12 months, with one only a couple of months ago.

We have a 6k deposit and purchasing a house at 147k.

Any advice would be grealty appreciated as I am now panicing we will lose the house.

Thanks in advance.

Yes NI co-ownership will automatically reject your application because you have a missed payment in the last 12 months. I would suggest you carry on saving and buy through the normal methods. Prices are still dropping in NI.

With a 6k deposit on a 147k house (yes I know its co-ownership) it looks like you really can't afford this anyway.

Co-ownership is a scam that helps people who can't afford to buy.

The actual conditions of the scheme require you not to be able to afford the purchase.
Keep saving.

saverbuyer

I would read the 17th page of the document in the link

http://www.co-ownership.org/fs/doc/publications/Applying_to__Oct_11.pdf

Graham727

Thank you for the reply.

Could you elaborate on 'co ownership is a scam'. I have heard mixed reports and any other views would be greatly appreciated.

I have heard the housing association can put up rent??

I have also heard that when selling it puts people off that the house is partly owned by a housing assoication.

We hope to build on land we have and was going co-ownership in the mean time with the view that in 8-10 years time the housing market will start to grow again.

We have a booking few on a house at the minute to.

Thanks

Graham727

Yes, this is the page I had read and just wanted it clarified by someone like yourself!!

saverbuyer

It probably won't be a problem for them to refund the booking fee. I wouldn't throw anymore at co-ownership though.

The reason I think this particular scheme is a scam is because
1: You look after the house, upgrade etc., only own a share but have to pay for all this.
2: You pay for all repairs.
3: If prices continue to fall (looks very likely if not certain) you still own co-ownership the full price when it comes to staircase or sell.
4: Rent increases by RPI every year.
5: Only applies to new builds which are overvalued anyway.
6: You have to specifically fit the scheme criteria i.e. have savings less than 5K and earn less than 60K combined. In effect saying you can only join the scheme if you can't afford the house at 100%.
7: New build developers offer few "incentives" and bartering with ones on the scheme.
8: You'll be stuck with negative equity, can't negotiate the price down, will pay ever increasing rent, and house prices are falling.
9: Limited number of lender (two I think). You'll be at their mercy when it comes to rate rises.

It's a rip-off plain and simple. Save more and bargain harder. In 12 months’ time you'll get much more house for your money and you'll be paying less interest.

saverbuyer

Your interest rate at 85% LTV will be 6.35%. High

Graham727

85% being the loaned amount??

How did you work out the interest rate??

Thanks

You have been very helpful to me so far!!

saverbuyer

Graham727 wrote: »

85% being the loaned amount??

How did you work out the interest rate??

Thanks

You have been very helpful to me so far!!

You're limited in the lenders who will lend on co-ownership. The only one I know is Ulster. Their rate for 85% LTV and higher is 6.35%. You need a 5% deposit for anything over 75%.

Yes 85% is the loaned amount.

Graham727

Yes, we knew that Ulster bank where prob the only one to offer co ownership mortgage.

Northern Bank offer a 95% mortgage but our income wouldn't cover the house price.

I'm in a pickle now!!

saverbuyer

Graham727 wrote: »

Yes, we knew that Ulster bank where prob the only one to offer co ownership mortgage.

Northern Bank offer a 95% mortgage but our income wouldn't cover the house price.

I'm in a pickle now!!

What sort of house? What area? What sort of earning?