New choice home buy

G_Bibby

I am married with two children and can't afford a home in the area they go to school in and my husband works in.
I spotted this Open market homebuy and thought I would apply. Is this the same scheme? We are in London is this the same area of low funds as you? or totally different scheme all together?? We have found a house but need extra 25%. Any advice appreciated??

Thanks.

brit1234

G_Bibby wrote: »

Any advice appreciated??

Thanks.

Don't do home buy at all, stay well clear. It is designed to keep prices artifically high.

If you want a property save a deposit and buy one at auction. On Radio 4 in the last hour they found auction prices selling on average 48% down from peak. Thats far better than a 25% price pay delay on a overvalued property.

My mate has got a homebuy a couple of months ago and is now in negative equity. Thats a nightmare for when you have to remortgage in 2 years time and big pay increases.

wymondham

Wait a while longer and buy normally .... I think after Christmas house prices will begin the real falls......

Susan08

Has anyone actually succeeded with MyChoice Homebuy scheme?

Every day I hear something different from MHO. They lose documents, then find them, then lose them, then they ‘remember’ some rules or other documents they need. On approval of funding I’ve been told to exchange contracts by end of December, but they still haven’t sent out the “approval” to exchange!

Its been three months since the offer on the property was accepted and all this time I’ve been left clueless about what is going on.

clanker

Hello to all. I bought my little flat in London last year using MyChoiceHomebuy through Metropolitan Home Ownership. I managed to slip in at the very end of the first round of funding so there weren't too many hold-ups in the process. If you have any questions I can try to answer them but am no expert!

bools321

we are supposed to complete this week with the my choice homebuy scheme but some legal matter has arisen and if they dotn sort it it looks like it may fall through, we will lose everything we put in this. all our savings, its caused so much stress, me and my husband have lost so much weight over it. All over additional borrowing which we are not bothered about having on the mortgage. the housing agent want a letter from the mortgage company to say we will go to them first for consent to borrow more on the mortgage and the mortgage comapny will give a verbal on this but not a letter with one sentence so say yes the customer will go to keyhomes before borrowing extra. i wont go to much into it but its totally stupid and we may now lose everything over this. we have also gave notice ont he house we are in too so dont know where i stand one this.

nalin

MyChoice Homebuy scheme

Any one know the names of the lenders (banks, building societies) who give mortgages under this scheme?

Thanks

llh189

The scheme is funded by both your local Housing Association and a mortgage, as far as I am aware you do not need a special mortgage as the money from the housing association is treated as a deposit.

I am waiting to get a property approved by my local scheme and have a mortgage in principle from Abbey, I went to two Financial advisors both got me a mortgage in principle, the other one was from the Nationwide. Neither of the products offered were special products both fixed for five years - the only real differences between my two offers were the overpayments and arrangement fees.

Approach you local HA to start of the process, once through the initial stages you should be given a list of FA who have experience of the scheme and should be able to help with mortgage advice!

HTH

nig0609

nalin wrote: »

MyChoice Homebuy scheme

Any one know the names of the lenders (banks, building societies) who give mortgages under this scheme?

Thanks

I had a quote in Dec 08 from Woolwich/Barclays for buying under shared ownership, I think Nationwide are big in shared ownership lending as well. Good luck

diamondg_2

tinkerbell1985 wrote: »

This website will tell you all you need to know about MyChoice HomeBuy and Ownhome.

The schemes are designed to help anyone on a household income between £20,000 - £60,000, but certain people will have priority. Including Keyworkers (NHS Nurse, Teachers, Firefighters etc etc), those in housing association/local authority properties, those registered as priorities on the local Housing Register and other priority groups recommended by the Regional Housing Board.

I work for one of the Homebuy Agents in the South so I deal with Low Cost Home Ownership on a day to day basis.

I think depnding on where you live will depend on how 'easy' it is to get onto the housing register. They don't neccesarily take just anyone on. The Housing Register is there for people with a genuine housing need. You can only find out by asking though - I imagine it may be different all over the country.

As for if you can take out a secured loan to purchase the rest of the property, I would say that is highly doubtful. On the old Open Market Homebuy (OMHB) scheme you were only able to remortgage and further borrow to help with home improvements, not to consolidate loans or something like that. Whoever you take the loan from (the housing association for My Choice HomeBuy, or Places For People for OwnHome) will have a 2nd charge on the property, so would have to agree to secured loans being taken out and this is highly doubtful as it would put their investment at risk. I'm not 100% about that as the new scheme was only introduced on 1st April & so we have no clients ready to pay back the loan on the new scheme yet, but this is what I would believe to be the case!

The Schemes

My Choice gives you a loan between 15-50%
Own Home gives you a loan between 20-40%

The My Choice HomeBuy scheme has an interest charge on the loan given of up to 1.5% per annum (payable monthly)

Whereas the OwnHome (through Places for People) have no payments on the loan for the first 5 years, then in years 6-10 there is a fixed interest rate of 1.75%, then in year 11 the interest rate is 3.75%.

My Choice allows you to gain a mortgage through any High Street Lender (so main banks and building societies) NOT sub prime lenders.

With Ownhome, the mortgage has to be through The Co-operative Bank (although they offer various mortgage products)

I hope this helps people thinking about purchasing a property through the Low Cost Home Ownership schemes. They are very good schemes, so definitely worth thinking about!

The link at the top is to the Housing Corporation (who govern all the housing associations & schemes etc). This site will provide you with the contact details for your local Home Buy Agent (Zone Agent) who will accept your applications for the Low Cost Home Ownership scheme.

Sorry to ramble on!!![/

I have just applied for my choice home buy and it seems to be taking ages for them to get back to us about it. we are coming into 4 weeks since we sent in our property details we leave in the east in Bedford can you please shade some light in regards to the time scales and also what our chances are for being granted our loan of 65 000