open market homebuyer scheme is it worth it?

delboy_rodney

Hi,

Just came across the open market homebuyer scheme were you can buy a home with an eqity loan,

Two equity loans – each worth around 12.5% of the value of your home – are provided, No charge or interest is levied on either of the equity loans for the first five years

has anyone managed to buy a house on this scheme? whats the good/bad?

thanks

ctabuk

I am a bit biased on this as it is my area of expertise -there are around 15 Homebuy approved brokers in the UK so the odds of finding another in this forum is a bit of an 'off chance' as it is very specialised.

The new scheme has actually opened up this scheme to include all UK Lenders regulated by the FSA - but typically these lenders are saying -'Hold On we don't do shared ownership' - The new 17.5% interest free loan from the Treasury is now available. So it's really a case of you contacting your local Homebuy Agent and they will evaluate affordabilty etc - they will no doubt point you to one of our colleagues. We are all fee free. Good luck

dreamalittle

I've just had a letter to say that my husband and I have been accepted onto the new OMHB scheme, subject to references and funding availability. Haven't decided yet whether or not we'd want to go for it, but we're looking at it at the moment.

ctabuk - can any broker in theory sort out the mortgage for this scheme, or would we have to go through a specialist like yourself? One of my friends is a broker and we'd like to go through her, ideally.

ctabuk

Yes - any Broker can in theory do business within the scheme - But - NO Fees are allowed and the conveyancing Solicitors are the key - without getting the conveyancing spot on then OMH can become a nightmare. If your Broker friend has any problems then we could easily assist her.

dreamalittle

Thanks for the info. Like I say, we've not decided whether or not to go for it yet, but I may be back at some point to ask more questions!