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Mortgage guarantee scheme - further details
deano3
Posts: 234 Forumite
Further details state that to use the scheme you cant have a second home, and must sign a declaration that you have no other property.
My circumstances are that i live with parents but own a house (not a second home) which is rented out. The rented house is in negative equity and i moved out to save a deposit.
The further details read to me that i would not be eligable, could anyone confirm?
Many thanks
My circumstances are that i live with parents but own a house (not a second home) which is rented out. The rented house is in negative equity and i moved out to save a deposit.
The further details read to me that i would not be eligable, could anyone confirm?
Many thanks
0
Comments
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This is a link for the new details just released http://www.guardian.co.uk/money/2013/jul/22/credit-history-help-to-buy-property-buyers
Im stressing that i might not be eligible, if someone with more experience than me with these matters can give there view on my circumstances and this scheme, i would be most grateful.0 -
You are not eligible.
You sign a declaration to say you will sell any other property before completion of this new one.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Not the answer i was hoping for but thankyou.
Do you expect 95% mortgages could become more available early next year without this scheme?0 -
I don't expect much of a change, no.
Lenders will want to use this, rather than offer 95% mortgages without the guarantee and capital relaxation it will give them, so I expect not.
Even if the scheme allowed it, I'm not sure a lender would want to take on a borrower at 95% with an existing negative equity situation in the background.
Could be wrong though. Have you asked any of the current 95% lenders?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
No as i was waiting for details of this scheme to be released. Its quite possible the negative equity is now on or around zero so if house prices increase there could be a little equity soon.0
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