New choice home buy

mafflondon

I will enquire further but I have called Metropolitan Home Ownership (who with Tower Homes manage the My Choice Home Buy scheme in London) who say that the maximum loan available is £100,000. If true then the so called "choice" you have to buy on the open market is limited to £200,000 (max 50% equity loan).

This is not exactly a realistic figure for familes struggling to afford houses or larger flats. Looks like its just another gimmick.

I'll post again when I have found out more

mafflondon

I called Housing Options (Metropolitan Housing) who said their automated message is wrong re. the £100,000 maximum loan. The figure itself should be £140,000 which would enable a max market value of £280,000. Anything more would need detailed financial assessment. Those registered for previous schemes should receive emails and or letters over the next week or two informing what to do next if interested. I still can't believe that they have got their figures confused so early on. It does not bode well.

Re. Previous queries re. paying back the government loan / equity on selling the property I really do think that you are required to pay back what you owe as confirmed on day of purchase. For e.g. £200,000 flat bought 2008, 50% equity share from government at £100,000. If you sell in 2010 and new valuation is £180,000 (with house prices falling this is a strong possiblity) you would not only be in negative equity to your mortgage provider but also to the government. Correct me if I am wrong.

I really do believe that unless you are looking to purchase for life or stay in a new home for 5 - 10 years you should hold fire on these schemes. House prices ARE falling. It maybe better to save and clear debts now and see if you can afford 100% of market price in say 1-2 years time. Thats my opinion only.

jimbojames

Hi - Can you tell me where you got the maximum figure of £280000 or £200000? I spoke to one of the financial advisers for MHO and they gave me an approx purchasing price of £266000. I'm a key worker who needs a 2 or 3 bedroom flat. I have some savings and all in all they could give me a equity loan of £41000. Seems different to the 50% or £140000. Does anyone know how they work it out?

mafflondon wrote: »

I called Housing Options (Metropolitan Housing) who said their automated message is wrong re. the £100,000 maximum loan. The figure itself should be £140,000 which would enable a max market value of £280,000. Anything more would need detailed financial assessment. Those registered for previous schemes should receive emails and or letters over the next week or two informing what to do next if interested. I still can't believe that they have got their figures confused so early on. It does not bode well.

Re. Previous queries re. paying back the government loan / equity on selling the property I really do think that you are required to pay back what you owe as confirmed on day of purchase. For e.g. £200,000 flat bought 2008, 50% equity share from government at £100,000. If you sell in 2010 and new valuation is £180,000 (with house prices falling this is a strong possiblity) you would not only be in negative equity to your mortgage provider but also to the government. Correct me if I am wrong.

I really do believe that unless you are looking to purchase for life or stay in a new home for 5 - 10 years you should hold fire on these schemes. House prices ARE falling. It maybe better to save and clear debts now and see if you can afford 100% of market price in say 1-2 years time. Thats my opinion only.

SuperNurse_2

Hi I'm a nurse and getting a bit confused by this whole scheme...
Can anyone help please ?
with the my choice home buy, is it right that you have to pay a 1.75% charge on your loan per year paid monthly,? say I had a £180,000 property 50% was the loan (£90,000) so I'd be paying back about £1,300 a month? this on top of my morgage for the other half. have I got my sums wrong, please help knowledgeable ones....
Thanks x

*jobags*

I think it's more likely to be the 1.75% spread over 12 monthly payments rather than the 1,300 per month

Best to contact your local council Housing Options Team (also/formerly known as homeless persons unit) and ask who their shared ownership/key worker partner is (usually a local RSL)

You can also ask for an appointment to see a Housing Adviser and get your name put on the Housing Register - this will mean that even if you're not ready to buy yet once you are you will have more priority when you are ready.
It may also be to your advantage to register with the preferred partner as you'll be informed of forthcoming schemes in your area

Lea Valley Homes cover this part of Herts - I think they have general info on their website

Anyone can join the Housing Register and although most people don't stand a cat in hells chance of getting a council/HA rented property they will have access to Housing Options and that includes free housing advice

Let us know if they mess you about as they have a duty to provide housing advice either directly or through a third party

Jo

tinkerbell1985

Hello,

SuperNurse - The charge on the loan could be different depending on what area you live in-your local Homebuy Agent will be able to tell you what the charge is in your area, but it is generally around 1.5/1.75%, this is payable monthly, so the figure you gave (£1,300) needs to be divided by 12, so approx £108 per month will be payable on that loan, to the housing association. (Just for the specific example you gave)

mafflondon - The loan you get with the MyChoice Homebuy scheme is an equity loan, which means if property prices go up, you pay back more than you borrowed, but if they fall you pay back less.

The amount the Homebuy Agent will lend you will entirely depend on individual circumstances. They will look at:

1. What size property you need - they will normally only accept a maximum of one bedroom above your need (so a couple would only be entitled to a 2 bed property). Remember these schemes are designed to help FTBs get a 1st step onto the property ladder, not to buy someone their ideal/perfect home!

2. What average prices are in your area for the size property you need - obviously you could want/find a 2 bed penthouse apartment worth £900,000, but they're not going to lend you £450,000 to buy it!!!

3. What you can raise as a mortgage by yourself - they will make you maximise your mortgage potential, so if you can afford a mortgage of £100,000 you can't say 'Oh, I'll only take an £80,000 mortgage and have a higher loan'

4. What savings you may have to put forward for the property - they will only let you keep back a certain amount - I believe it's anything over £10k must be put towards the property.

There will be maximum figures given, but again these will depend on the area you live as average property prices can and do widely vary around the country. However, these maximum figures will be fair and will be calculated on prices in the area. You should be able to find a property in the area within the maximum, if you believe you can't, you can always take this up with the Homebuy Agent and ultimately the Housing Corporation, who govern the schemes and the Homebuy Agents.

I hope this helps, if there are any other questions, I will answer as best as I can. I work for a Homebuy Agent, so should be able to answer most queries.

Sx

bettersoon

so can I only buy the properties they have listed or any property in the market? How does renting work with homebuy? There doesnt seem to be much available if the only properties they have is listed on the site.

Any advice would be greatly appreciated! My situation is me and my partner is currently living in a one bed flat with our 3 year old daughter and new baby on the way in 2 months! the flat is council and under my mums name and me and my daughter is registered here. We are renting our house out and has put it on the market as we cant afford to live there. so until we sell it we cant do much! We waiting for a transfer for a bigger place but we're not high priority so i have no hopes in taking that way out!

My plan is to sell the house and pay off all our debt and to buy through homebuy but my partner is not a key worker and as we've bought before we wont be considered as first time buyers right? also his name is not on the housing register and i am not employed to be able to buy. :0( I want to add his name to this flat but will thye let us as that will make it very overcrowded! Anyway we cant plan anything or get anything on the way until we can get rid of the house. I also feel like a criminal cause my partner is living with us when he shouldnt be there!

bettersoon

anybody? maybe i should speak to the council and see where we stand and what we can do to get bigger accommodation...

happypig

Has anyone had a loan offer on the My Choice HomeBuy scheme yet? I've been pestering my HA (Thames Valley) for the last six weeks and am continually told that it will be another week..

I am hoping to buy the apartment that I am renting, but I need to be in a position to make an offer within the next 4 weeks, otherwise I'll be out on my ear and again forced to squander my savings on a private rental for another 12 months - just to go through the same rigmorale next year with even less money for my deposit!

BiggaThanBen

happypig wrote: »

Has anyone had a loan offer on the My Choice HomeBuy scheme yet? I've been pestering my HA (Thames Valley) for the last six weeks and am continually told that it will be another week..

They were moving offices recently, maybe have not got their systems fully working yet ...