Ownhome/People for Places/Co-op - Help

haras_nosirrah

There are lenders who will allow a shared equity mortgage with the equity loan not being cleared.

Most want the equity loan clear but there are a number where you can keep the equity loan in place.

This is broker territory though

limanda

Hi All,
I have read through many of your comments as I am also in the position where I am stuck on the variable rate unable to pay back any of Places for Peoples 35% share. I officially complained to co-op to be shrugged off. I have taken it to the financial ombudsman and awaiting a response, perhaps if we all took it further we may get some answers? It was great at the time to be able to buy my first home but such a shame to be paying for it now.

SMcP_11

It was great to read your posts and realise I am not the only person struggling with Ownhome/People for Place/Co-op. Is it worth us as a group going back to the Financial Ombusdmen to complain, which in turn, if we are more vocal and share on social media site, may bring out others who are struggling as we are? What are your thoughts?

Mitz17

Hi, how have you all progressed now? I hope it is going smoothly and you are getting the answers/support you need? What did the ombudsman say?

SMcP_11

Hi Guys,

Just wanted to get an update on this thread.  Aside from those who have moved their Mortagage, are any of you still in the same boat?  Have you made any complaints to either the Co-Op, People for Places, Financial Ombudsmen?  I am coming up to my 11th year and can ill afford the 3.75% rise.  Currently using a mortgage broker to seek alternative's, which is proving a challeninge.  Would you kindly share you experiences past and present, as I would like to put something together to Places for People as I feel this scheme has been miss sold to us (similary to PPI).  If we act together we may have greater weight.  Please respond, so that we may act a s community to have this resolved.  What do you think?

Sonia

grommit88

I've been on this scheme for eleven years (since 2009) with a Places for People / Co-op mortgage (previously called the Ownhome scheme). Last year I approached an independent financial advisor who is also a whole of market mortgage broker. He tried his best, but he couldn't find any alternative to me staying on the scheme. I feel that I was originally mis-sold to, but I don't know what I can do about this. I agree that if we act together we may have greater weight, but I don't think many of the people who were originally on the Own Home / Co-op mortgage thread still read this thread. Anyway, I thought I'd post in the hope we get a few more responses.

ADAMH0

I too am still on the scheme an in my 11th year paying 3.75% interest on the equity loan from places for people. I remember when I tried to remortgage with the Co-op many years ago, the advisor being very clear that they had no interest in this type of lending scheme anymore and wanted to clear them off their books! 

Solenoid

I am also on the scheme. We took 40% equity back in 2009 but paid back 20% so far. I am just about to pay another 10% and my bank just offered me loan with 3% interest. So I am thinking to take a bank loan to pay the rest of the 10%. I am also studying full time in a university, on my second year now. I cant afford to pack in work with all that. So, still working full time. I will talk to my bank and go from there. I might be free of places for people soon 🥳

pompeyboy77

We’ve just passed our 11 year anniversary and have experienced the same common issues reported here. I think the worst moment was when we were 2 days from exchanging contracts, but as we were selling leasehold, had to redeem the places for people loan within 12 weeks from our valuation date. They would not extend, meaning we would need a fresh valuation and therefore the chain broke. Coneyancing fees, leasehold management packs, emotional turmoil, broker fees and PIP couldn’t extend when I gave them more than a weeks notice of the exchange date as we required responses to the place we were purchasing.

We’ve also had the same discussions with the Co-op about no chance of going onto a new mortgage product with them. Living in Greater London with a 40% equity loan and two person income and still not able to be on a better deal or even the time to sell and move is a scandal. 

I too have tried the ombudsman and got a rather pathetic response.

Many a time has my wife said, maybe Martin Lewis can help? 

To those that have (staircased - i think the term used for paying off in 5%) chunks. I’m assuming you’ve had to fork out for valuations each time and paid 5% of the shared equity? Our intital loan was £70000 which was 40% shared equity. We’ve barely cleared £30k on the mortgage as we did a ten year fix at about 5.2% but paid about 9k in interest to places for people. 

Again, we’re grateful as keyworkers to have been able to get on the property ladder, but we should have the same rights to have the whole market access to get a better deal if remortaging or at least given the flexibility to have moved. 

We had used Which? Magazine mortgage brokers who were getting us great rates on NatWest for under 2% when moving. We definitely feel trapped.

Solenoid

pompeyboy77 said:

We’ve just passed our 11 year anniversary and have experienced the same common issues reported here. I think the worst moment was when we were 2 days from exchanging contracts, but as we were selling leasehold, had to redeem the places for people loan within 12 weeks from our valuation date. They would not extend, meaning we would need a fresh valuation and therefore the chain broke. Coneyancing fees, leasehold management packs, emotional turmoil, broker fees and PIP couldn’t extend when I gave them more than a weeks notice of the exchange date as we required responses to the place we were purchasing.

We’ve also had the same discussions with the Co-op about no chance of going onto a new mortgage product with them. Living in Greater London with a 40% equity loan and two person income and still not able to be on a better deal or even the time to sell and move is a scandal. 

I too have tried the ombudsman and got a rather pathetic response.

Many a time has my wife said, maybe Martin Lewis can help? 

To those that have (staircased - i think the term used for paying off in 5%) chunks. I’m assuming you’ve had to fork out for valuations each time and paid 5% of the shared equity? Our intital loan was £70000 which was 40% shared equity. We’ve barely cleared £30k on the mortgage as we did a ten year fix at about 5.2% but paid about 9k in interest to places for people. 

Again, we’re grateful as keyworkers to have been able to get on the property ladder, but we should have the same rights to have the whole market access to get a better deal if remortaging or at least given the flexibility to have moved. 

We had used Which? Magazine mortgage brokers who were getting us great rates on NatWest for under 2% when moving. We definitely feel trapped.

We paid in 10% chunks 2 times. Each time we had to get valuation on the house. First 10% pay, we had to get solicitor too for conveyancing. To date I still don't know why I needed a solicitor. Second time we paid 10% we were told that we didn't need solicitor. We also got 40% equity of £64000 loan. So paid £32000 so far as house was valued same what we paid for it both times.