Ownhome/People for Places/Co-op - Help

MovingForwards

@haras_n0sirrah @kingstreet are brokers who post on MSE, let's see if they know how to get this resolved.

Solenoid

Wow just got our valuation report. Apparently our house went up in value £40000 since last time we staircased 6 years ago. That means I need £4000 more which I don't have 😓

ADAMH0

This thread has been going for many years now, but is anyone else still on this scheme? Not only am I now stuck with the 3.75% payment to Places for People, but the continual Bank of England rate rises over the last year and a half have added hundreds onto my monthly mortgage payments as I'm still on a tracker that I was unable to change from as I couldn't find a mortgage lender that would deal with the equity loan    

pompeyboy77

ADAMH0. Please contact Harvinder Singh at FOMO mortgages. He helped us remortgage as we felt even more trapped because we’ve a leasehold property. Every time we went to sell, we had a 12 week window to redeem the P4P loan against the valuation we paid for. We missed out my a matter of days due to their inflexibility. Then the Grenfell fire checks in our place dragged on and thought we’d never get out of the lock with the COOP mortgage as we’d taken a 10 year mortgage at 5.2% in 2009 which looked sensible. Boy, did we misjudge that. The Co-op wouldn’t even let us choose a new product with them. I found this to be disgusting really. They see how good you are for eligibility and then leave you paying more than most which starts a debt burden.

Anyhow, there is hope. We’re now still in the same place but with a new mortgage that can be ported and it’s with a major high street lender. 

I hope FOMO can help you. Please mention Ian & Peggy to Harvinder. 

grommit88

SMcP_11 said:

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?

Did you or anyone else get anywhere with this? I'm still stuck (as per my previous post in April 2020). 

Toby7

Just wanted to add, we got our deal out in Sept 2009. And we were just about to take on half of our 40% loan last year just before the mini-budget was announced. Our loan was originally £68k but now is worth £134k due to house price increases. We wanted to try and take on the loan before it went up any further. When the mini-budget was announced and everything went crazy I put the brakes on this. and I’m thankful I did. To anyone else still paying the 3.75% on the loan, you might be better of hanging tight for the time being as you’ll only be trading in a 3.75% rate for 20/40% of a decade+ old value for potentially 5-7% for todays 20/40% value, costing you £100’s more each month for no reason. House prices have now stagnated or decreased so we are going to wait and see how the market unfolds over the next few years. Whilst saving rates are high, I would recommend saving in the background to pay off a lump sum later down the line, unless you’re paying more in interest on your mortgage that you can get in savings, in that case, make overpayments on your mortgage if you can. We are currently with Lloyds and our deal is up in January. Have a meeting with them soon to see what rate they can offer for 2. 5 or 10yr fixed. Our actually mortgage is low now at around 70k so it’s far easier to weather the storm of high interest as an extra 5% on top of what we’re paying now will only be a matter of an extra £100-£150 a month, instead of £500-£600 if we had taken on the loan last year. It was a great way to get on the housing ladder in 2009, and who would have known house prices were going to double. We must be some of the only home owners who despaired every time we saw house pieces go up! I wish we’d borrowed more against our mortgage a few years ago and invested it, could have paid most of the loan off by now with our returns but hey ho, shoulda, woulda, coulda. Good luck to anyone reading, its tough out there at the moment but nice to know we’re not the only Ownhomers left!