Home Buy Schemes

Unclebob_3

I have just applied for a government home-buy scheme, which offers to lend elligible applicants 25% of the value of a property interest free by means of two 12.5% equity loans. Having read more about the scheme I found out that although "interest-free", it may not be as good as it sounds as if property prices rise, I would have to pay to have my property valued and pay back the loans which increase in value in proportion to the increase in value of the property. On the other hand, if prices fall the equity loans may also decrease. The equity loans would also have to be repaid in full if I needed to move house for any reason....
...Is there anyone out there (Martin please help?!!) who can give me some of idea of whether this scheme is better than a conventional mortgage or not (bearing in mind that I would still need a conventional mortgage to help with some of the remaining 75% that my deposit won't cover)? I realise it's not a straightforward yes / no answer, but someone who knows more about the pros and pitfalls of both Homebuy and mortgages could perhaps share their thoughts? I have a London and County mortgages guide which is great and has helped me get my head round a lot of stuff, but it doesn't mention Home buy schemes.....
Thank you peepul :beer:

herbiesjp

This might help:

http://www.housingcorp.gov.uk/server/show/nav.549

MortgageMamma

Hi ThereDid you use london and country to apply for the conventional mortgage? who advised you? I have a link to the homebuy scheme website but I honestly could not tell you anymore than what is published in the link as I've never done one of theseSorry I cant be of more help, but, before you applied did you check to see if you could get a 100% conventional mortgage?

Unclebob_3

hi mortgage mama,
i'm not after 100% mortgage - got a bit of a deposit. I haven't contacted London and County but will do in near future. I intend to trawl thru as much info as possible before I enquire about mortgages as I want to ask all the right questions and have a general understanding of what i want and what's out there.
Ta for tryin to help

Unclebob_3

Come on... some one out there must know something about this? Please help me as I'm not having much luck, despite talking to IFAs and brokers.

davesgirl97

Unclebob wrote: »

hi mortgage mama,
i'm not after 100% mortgage - got a bit of a deposit. I haven't contacted London and County but will do in near future. I intend to trawl thru as much info as possible before I enquire about mortgages as I want to ask all the right questions and have a general understanding of what i want and what's out there.
Ta for tryin to help

if you have a deposit and can be accepted for a conventional mortgage why are you going for a home buy scheme?

Unclebob_3

Cos I can only afford a puny house in a terrible area without the home buy scheme.