new 17.5% homebuy scheme?

boodledoodle

Has anyone got any experience with it? Me and my other half are currently applying and I just wanted to see how other people had got on.

Guy_Montag

If this is shared ownership, I reckon there will be a panorama about them in about 6-12 months. But that's just prejudice.

jaype

Is that the one where the government stumps up the deposit? Looked into it and please, beware if it is. You are tied into certain highly uncompetitive mortgages for the balance (Advantage's one was at about SVR rate), and I am sure there was some jiggery pokery that allowed the mortgage providers to wriggle out of any liability for shouldering a percentage loss if the market fell. i can't remember if this made the government liable, or if all negative equity liability was shifted onto the purchaser. it's been a long time since I looked it over...

rach!_3

myself and my partner are also just applying for this and on the "notes" that came with the application pack it says "most banks and building societies are qualifying lenders, but it is suggested you check with either the homebuy agent or an independant financial advisor"

boodledoodle

I think you're tied to Nationwide, RBS/Natwest and someone else.. Abbey perhaps? TBH Nationwide seem quite good overall. I'm not too sure how the whole negative equity thing goes, thanks for mentioning that, I'll definitely ask. If anyone is wondering this work by basically giving you the deposit up to 17.5% of the market value for the house but you're only allowed to get a mortgage stretch of up to 3.5 times so its not great if you're on a low salary but its understandable as its meant to mean everything is "affordable". I dunno, we'll see what happens

CYBERCIDERSAVER

open market homebuy is, I think a better idea than the trad. shared ownership.

When I looked into it, the government offered up 12.5% and the mortgage company also offered the same. Meaning you bought 75% of any property on the open market.

can't remember much else. Seem to remember it's better in one way than SO. I don't think you pay any "rent" on the 25% you don't own.

Can't remember the pitfalls though.

CYBERCIDERSAVER

basic rules of homebuy:

http://www.housingcorp.gov.uk/server/show/nav.2129

For those that can't be bothered:

"There are three Open Market HomeBuy products available through HomeBuy Agents. One offers a 25% equity loan in partnership with lenders, a second offers a 17.5% equity loan through the HomeBuy Agents and the third is a 32.5% loan offered by one lender in conjunction with the HomeBuy Agent's loan."

and the inevitable buy now pay later clauses...

"For all three products there is no charge, interest or monthly payments levied on the equity loan provided by the HomeBuy Agent.
For the 25% and 32.5% products there is no charge or interest levied on the equity loan by the participating lender for the first five years.
However, when repaying the equity loans, the home owner will have to share any increase in the property’s value with the lender (for the 25% product) and the HomeBuy Agents."

rae1202

i live on a housing association estate where some of the houses are shared ownership and some rent...( we rent) A lot of people are selling there shared ownership homes and to be honest when i looked at the deal it is rubbish they have to pay mortgage and just £100 short of what i pay a month and have all the maintaince and repairs to do. council moved some right gits in here i am looking to move along with some more renting so shared ownership i would be very wary