Homebuy Scheme

[CheGuevara]

Originally Posted by Drew Carey

Quick Q, did you guys still need to find 5% deposit?

Yep we've been told that's the prerequisite, although 5% of the mortgage amount, not the total price of the house (ie not including the bit that Homebuy is contributing).

[Drew Carey]

Originally Posted by CheGuevara

Yep we've been told that's the prerequisite, although 5% of the mortgage amount, not the total price of the house (ie not including the bit that Homebuy is contributing).

Apparently it is now.....but when they first started the scheme you could do it with zero deposit. Hence there was a real appeal to doing it. That was what the government wanted, so that people who couldn't save, but could afford it, could get on the ladder.

The mortgage companies decided after a while to request the deposit. Hence why the take up of Homebuy has decreased substantially. Still a cracking deal though. Hopefully when we have the saved up amount, they are still doing it, otherwise we continue saving till we get enough to buy without homebuy.

Or, can do one of the builders shared equity schemes....as they all tend to do their own version, just that the amount you borrow tends to cost a little more and if you sell, you not only pay them back, but also pay them the equity share of any profit. So not as good as the govt scheme.

Maybe being thick but Home Buy sort of sounds like a good scheme for maintaining artificially high property prices.

A Sort of Oops we've priced our population out of the property market so no one's buying anything. Let's not let market forces sort this out though - think of the stamp duty loss - let's prop up the current property prices. (?)

Not saying it's a bad scheme just that it shouldn't need to exist.


Homes are for living in Dammit.

And Breathe

[CheGuevara]

Originally Posted by Drew Carey

if you sell, you not only pay them back, but also pay them the equity share of any profit. So not as good as the govt scheme.

As I understand it (reading the Homebuy Direct website) this is true of the Homebuy Direct scheme as well. I'm sure of course this is the developers incentive to kick in their share of the money (split with the gov't up to the 30% total). On the flipside, if prices fall and you sell, they take a hit on their equity share -so your upside is limited based on what you're contributing, but the risk is shared as well.

[Viney]

Is this one of the part buy part rent schemes?

3 people at work have all got out of thiers as its a bleedin nightmare and not as good as it looks on paper. All i know that the terms that you are bound under are quite restictive, and when/if you come to sell, there is all manner of legal stuff that you have to get round. To quote caroline " The only thing thats good about it, is thier marketing department"

Originally Posted by metalmonkey

Anyone else done this?

I really don't want to buy a new build, my rental place is a new build about 10 years old the quality can only be described as sub standard this place has pretty much no isnulation I can hear the neighbours fart and hear the fridge in lounge

Has anyone sold a house on the equity loan scheme, does that make the sale process more complex espically if you are in a chain?

Can you buy a place on the open market?

I wouldn't live in London as most of the key buyers stuff seems to flat in blocks, so on top of everything you pay a service charge which I'm not keen on. I have frineds who have to pay a service charge its a lot more
money not too metion when they decide work needs doing and they $1000 (my pound sign doesn't work) from each person to pay for it.

The part buy/rent scheme I wouldn't use, I have heard not much good about that at all.

New builds arent so bad, just find a little about the building first before you buy it! The new build flats I live in is part of a 'first time buyers' scheme. I saw the flats while they were being built, and noticed the walls were thick concrete.

I moved in 3 years ago now, and dont hear anything. My bedroom even butts up to the lift!

Although I did hear an amazing argument from a flat above me the other night... but it was good entertainment so im not complaining!

I have a mortgage for half the price of the flat. The company 'Moat Housing' have the other half. I will start paying rent on the 4th year I have lived here at 1% of what I borrowed from them, 5th year 2% and 6th year 3% (it is then capped at 3%).

It will work out quite expensive for me when it reaches them 3% but I hope to have sold it and moved on by then (which is what its about, the scheme simply gets you on the property ladder).

I'd say I made a good move in buying it. Not many people manage to buy a place at 20 years old.

[CheGuevara]

Originally Posted by Viney

Is this one of the part buy part rent schemes?

Not really, itr's more a case of the govt and the developer pool together to lend you up to 30% of the purchase price. It's interest free for the first 5 years and nominal interest (but indexed to the RPI) after that. You have 25 years to pay them off and you can start after year one.

Originally Posted by hindle8907

cheers for the advice guys me and heather my partner have just left a 500 pounds reservation fee on a house on the home buy scheme,
A big thanks to the OP for brining this scheme to my attention we was just about to sign another 12 months Rent contract.
the house is a 3 story town house and is a amazing its not built yet but we have been in one thats the same layout. but this means we get to pick everything just waiting for the application to complete on the home buy scheme but we have been told its very unlikely we will get denied so whoooowhooooo

Would be interested to know what has happened with this now? Is all sorted out and you moving to the new place? Is it a part buy, part rent scheme? I spoke to a mortage adviser about that, she told me that they are not what they are meant to be. As in even as a key worker they are hard to get as they money is there, she has only seen less than five of these go through it...It seems there is never money there for them.

I rent 3 floored town house right now, it gets very cold down stairs though this winter has been brutal and still is! Who is building the houses, lets hope its not Barrets.

[hindle8907]

In the end we didn't get accepted for the 3 Bed town house we was looking at, we are only allowed a 2 bed as we have no kids (Stupid) and also we only got accepted for 84 Grand, we needed 103 to get the house we wanted, so we are going to have to save up and buy outright .

It was the part buy scheme we as looking at.

[G]

Originally Posted by hindle8907

In the end we didn't get accepted for the 3 Bed town house we was looking at, we are only allowed a 2 bed as we have no kids (Stupid) and also we only got accepted for 84 Grand, we needed 103 to get the house we wanted, so we are going to have to save up and buy outright .

It was the part buy scheme we as looking at.

I personally think you are much better off doing this. These shared equity scheme are nothing but trouble, we have friends that have bought house this way and they are extremely tied in and completely regret doing it.

Buy what you can afford or dont bother. You'll be glad you did down the line when you start trying to move on and sell the home.

The annoying thing around my area is that when you go to a new development over 50% of the properties are on the homebuy scheme, we always get told they are not available to you unless you are a first time buyer even if you have the cash ready and available to buy it...yet hardly anyone can get accpeted on the schemes... it seems they dont want to sell houses.