Too soon to ask for an update?

JustJane101

amnblog said:

I can see what Kensington would have a problem with this. There would appear to be a risk that the borrower using such a scheme would be committed to further payments to the scheme.

I understand that, but I had already given them enough information to prove that that is not the case. I'm now applying to Forces Help to buy scheme, which they will accept so long as it passes affordability. It seems weird to me that they will accept a loan that is to be repaid over 10 years, but not a scheme I can walk away from. If this works though, i'll simply use the deposit from the scheme to pay of the FHTB straight away so I'm not paying out £70 a month.

Interestingly, even if I was still paying £500 a month into the scheme and £500 a month mortgage,  utilities ...Car insurance / fuel / food / insurances and putting £100 a month into savings, i still have a buffer. I guess the way they work out affordability is different though.

NewShadow

JustJane101 said:

amnblog said:

I can see what Kensington would have a problem with this. There would appear to be a risk that the borrower using such a scheme would be committed to further payments to the scheme.

I understand that, but I had already given them enough information to prove that that is not the case. I'm now applying to Forces Help to buy scheme, which they will accept so long as it passes affordability. It seems weird to me that they will accept a loan that is to be repaid over 10 years, but not a scheme I can walk away from. If this works though, i'll simply use the deposit from the scheme to pay of the FHTB straight away so I'm not paying out £70 a month.

Interestingly, even if I was still paying £500 a month into the scheme and £500 a month mortgage,  utilities ...Car insurance / fuel / food / insurances and putting £100 a month into savings, i still have a buffer. I guess the way they work out affordability is different though.

Hmm... if I were you - given the fairly favourable terms of FHTB - I'd consider keeping the money for renovations/improvements to my new home. 

There aren't many better products available than the FHTB scheme - and there are always many more expenses involved in setting up a new home than you'd expect - but that's what I'd do and you'd have to do the math for your circumstances. 

JustJane101

NewShadow said:

JustJane101 said:

amnblog said:

I can see what Kensington would have a problem with this. There would appear to be a risk that the borrower using such a scheme would be committed to further payments to the scheme.

I understand that, but I had already given them enough information to prove that that is not the case. I'm now applying to Forces Help to buy scheme, which they will accept so long as it passes affordability. It seems weird to me that they will accept a loan that is to be repaid over 10 years, but not a scheme I can walk away from. If this works though, i'll simply use the deposit from the scheme to pay of the FHTB straight away so I'm not paying out £70 a month.

Interestingly, even if I was still paying £500 a month into the scheme and £500 a month mortgage,  utilities ...Car insurance / fuel / food / insurances and putting £100 a month into savings, i still have a buffer. I guess the way they work out affordability is different though.

Hmm... if I were you - given the fairly favourable terms of FHTB - I'd consider keeping the money for renovations/improvements to my new home. 

There aren't many better products available than the FHTB scheme - and there are always many more expenses involved in setting up a new home than you'd expect - but that's what I'd do and you'd have to do the math for your circumstances. 

That did occur to me, but also puts me In a position of not being able to leave. I would like to leave at some point in the next 3 years and go self employed once my partner moves up, so will be in a position to have to pay it straight back before this. My partner earns more than double what I do so together we would be able to do it but I'd rather not