Housing Scheme funding refused

AnnaElsa

My partner and I have been in the process of applying for a housing scheme. Type of shared equity but no rent payable on their portion. Anyway, as part of the initial application we had to see a fnancial advisor, to see how much we would be able to borrow based on our earnings. We got the AIP for 93k and were really happy.

It's taken months to get through the next stages, lots of emailing documents, adding more and more documents. And yesterday we were told we were unsuccessful. We had decided, seeing as we have a baby due soon that we would leave it until the next financial year anyway, but I was really shocked to see their workings and there was no explanation.

They base their expenditure figures on what the average running costs of a 3 bed home with 2 kids are..... Except we don't spend anything near what they say are the average costs. They say according to their expenditure charts we only would have 193/m available to pay towards a mortgage. Our current rent is 480/m (extremely low for the area, we are lucky!) and when we went for the AIP we made sure the mortgage payments were lower than this for the figure we were considering.

This time next year we will be really really cramped at home. The baby will be almost 1 and we are in a tiny 2 bed cottage. Current rental prices for houses in our town are £700/m and approx £1k fees upfront. We can't afford to do that and are nervous about being on a tenancy that may be short term.

A few friends have said we should write to local AM (Wales) to see if she can help as I am assuming these figures are national averages.

Has anyone any advice, we were hoping to reapply in April for the new financial year but don't fancy our chances if this is the standardised acceptance procedure.

Comms69

There is no law that requires anyone to ever lend you money. So the short answer is no. You either move, you increase your income or you carry on as you are.

Pixie5740

AnnaElsa wrote: »

My partner and I have been in the process of applying for a housing scheme. Type of shared equity but no rent payable on their portion. Anyway, as part of the initial application we had to see a fnancial advisor, to see how much we would be able to borrow based on our earnings. We got the AIP for 93k and were really happy.

It's taken months to get through the next stages, lots of emailing documents, adding more and more documents. And yesterday we were told we were unsuccessful. We had decided, seeing as we have a baby due soon that we would leave it until the next financial year anyway, but I was really shocked to see their workings and there was no explanation.

They base their expenditure figures on what the average running costs of a 3 bed home with 2 kids are..... Except we don't spend anything near what they say are the average costs. They say according to their expenditure charts we only would have 193/m available to pay towards a mortgage. Our current rent is 480/m (extremely low for the area, we are lucky!) and when we went for the AIP we made sure the mortgage payments were lower than this for the figure we were considering.

This time next year we will be really really cramped at home. The baby will be almost 1 and we are in a tiny 2 bed cottage. Current rental prices for houses in our town are £700/m and approx £1k fees upfront. We can't afford to do that and are nervous about being on a tenancy that may be short term.

A few friends have said we should write to local AM (Wales) to see if she can help as I am assuming these figures are national averages.

Has anyone any advice, we were hoping to reapply in April for the new financial year but don't fancy our chances if this is the standardised acceptance procedure.

Comparing mortgage payments with rental payments is like comparing apples with oranges. There are more costs associated with home ownership than just mortgage payments. You currently rent a 2-bedroom property so how do you know that you won't spend anywhere near the national average for owning a 3-bedroom property plus your children are getting older and will want/need more.

If this scheme base your expenditure on national figures I'm not sure what you can do. They need to responsible and ensure you can afford the property and if the national average expenditure is the criteria they set then that's the criteria you need to meet. Which scheme is this? Homebuy - Wales?

Tropically

I speculate with no supporting evidence that having a baby due may have affected it. Maternity pay is not that great.