Homebuy Scheme

lizzyp_2

Hello there

I've just started looking into the new homebuy scheme. We are currently renting @£800 a month so would like to look at the New Build Homebuy scheme, unfortunately at the moment I know nothing at all about mortgages or house buying or anything like that at all so I need some help.

I have applied to Homebuy and have been approved in principal.

The main problem is that we have approx £20,000 debt on credit cards etc, I have been paying these off for the past 3 years through Payplan but would ideally like to pay them all off asap.

So:

a) Should we apply in joint names with my bad credit or just in hubby's name with better credit.
b) If we purchase say 50% for £80,000, would we then be able to get a £100,000 mortgage to pay off the other debts?
c) They say we need £3500 for fees etc. Do we need this up front or could we save up for a few months as we are planning on moving back in with my mum for a few months to raise this £3500.
d) Is there anything else that I should be worried about? I've read some of the mortgage guides but it's all really confusing, who should I see for advice.

Thanks

Liz33

Hi

I work for a housing association selling Newbuild Homebuy so should be able to answer some of your questions. I assume you are buying through a Housing Association and not a normal developer.

In answer to your questions:

a) I would recommend you still apply in both names, if you are able to. As otherwise you would have to sign legal documents stating you will be living there and have no rights to property and I don't think you would be able to go on the tenancy as such. I can give out the name and number of a company (financial advisors) who specialise in arranging mortgages for this scheme and should at least give you some free advise initial but i'm not sure if i'm allowed to do this on this site. Anyone advise?

b) You would not be allowed to get a mortgage for more than your share is worth, so if your share is £80k then that is the maximum you can borrow.

c) This will depend on the Housing Association, most will look to see you have this when they interview you for a particular property. I would just advise them what you are doing and i'm sure they'll be fine.

d) This scheme is good to help you get on the property ladder especially now when things are so expensive. Obviously this is just my opinion but I bought my first property using this scheme and have now moved on to buying on my own.

I hope this is of some help to you but anything else you need to know then just ask.