Robin
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Registered: 7th Jan 04
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Anyone got any experience with it?
Basically, you only need a mortgage for 80%, a 5% deposit and Redrow lend you the other 15% in interest free loan form for 10 years.
That means on a 2 bed house, you need a 98k mortgage, 6k-ish deposit and that's it... (for ten years)
Makes a new house a hell of a lot more affordable.
What's the catch?
Also, anyone know of any other schemes from other builders?
[Edited on 15-11-2010 by Robin]
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ed
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Registered: 10th Sep 03
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http://c20xe.co.uk/board/viewthread.php?tid=581884
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Xs
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Registered: 12th Apr 02
Location: Lanarkshire
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There was loads of incentive schemes about over the last year. Some builders were even offering the chance to rent the property for a year and if at the end of the 12 months you wanted to buy they would add your rent into your deposit.
Not sure who is offering what now though.
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Robin
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Registered: 7th Jan 04
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It's slightly different to that Ed, those ones seem to be part buy (or mortgage) part rent.
Redrows one is a loan deferred for 10 years, no rent to pay them, just pay the loan back within the ten years.
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Robin
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Registered: 7th Jan 04
Location: Northants Drives: Clio 182 Cup
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Oh wait, I've read it all now 
Xs, you say they're not good long term, why?
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ed
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Registered: 10th Sep 03
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Isn't it just their name for the government shared ownership scheme?
http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_066514
There's no rent there, just an interest free loan for part of the homes value. You then can get a mortgage for the other part of the home.
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Kyle T
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Registered: 11th Sep 04
Location: Selby, North Yorkshire
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quote:
Originally posted by Robin
Anyone got any experience with it?
Basically, you only need a mortgage for 80%, a 5% deposit and Redrow lend you the other 15% in interest free loan form for 10 years.
That means on a 2 bed house, you need a 98k mortgage, 6k-ish deposit and that's it... (for ten years)
Makes a new house a hell of a lot more affordable.
What's the catch?
Also, anyone know of any other schemes from other builders?
[Edited on 15-11-2010 by Robin]
I'm currently living in a redrow build property and I used the easybuy scheme.
There's no catch, and you don't pay the 15% off incrementally over the 10 years which means two things...
First, you keep any interest you gain whilst saving it up.
Second, you've got to be disciplined - and don't put it off for the first two years like I did
They pretty much come to you after 10 years and ask for the £15% all in one go.
I did it in the middle of the credit crunch drama, and actually got a 100% mortgage - no deposit at all.
Lotus Elise 111R
Impreza WRX STi
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Robin
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Registered: 7th Jan 04
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How has the house been? Any major faults with it?
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mattk
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Registered: 27th Feb 06
Location: St. Helens
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I was gonna say, the catch is you get a house built in an impossible time frame by pissed off under paid men
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Kyle T
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Registered: 11th Sep 04
Location: Selby, North Yorkshire
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quote:
Originally posted by Robin
How has the house been? Any major faults with it?
Fine, mine was one of the first on the estate to be ready so the Redrow guys were lurking around for months.
They warned me about plaster cracking as it settled, so they came in and redecorated for me and it's been fine ever since.
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Impreza WRX STi
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Chris
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Registered: 21st Sep 99
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The only problem is the house will grow in value if the market rises, but also will the amount that you owe when the 10 years is up so will be more than the 18k borrowed.
But if you are paying off for 10 years, this will most likley cover the 15% when you remortage in 10 years to pay off the borrowed 15%.
Its a big if, the market need grow
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dannymccann
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Registered: 9th Aug 06
Location: Doddington, Lincolnshire
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Chris, for my one (Keepmoat Homes) my 20% fluctuates with the value of the house, so if the house were to lose value after 10 years the % I owe them will also go down, not sure if its the same for other ones, Ive heard for some you always owe the minimum but are liable for extra if the house goes up in value, but if it tumbles your the one up shit creek
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AlunJ
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Registered: 3rd Apr 07
Location: Newport
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I have a mortgage for 75% and 25% is retained by bovis, after 5 years I can start buying the 25% back, (so ideally remortgage for the whole 100%)
If after 10 years I haven't bought the 25%, I have to sell the property. If I sell up, bovis gets a 25% share of whatever the house sold for even if it sells for less that the original selling price.
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Kyle T
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Registered: 11th Sep 04
Location: Selby, North Yorkshire
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quote:
Originally posted by Chris
The only problem is the house will grow in value if the market rises, but also will the amount that you owe when the 10 years is up so will be more than the 18k borrowed.
But if you are paying off for 10 years, this will most likley cover the 15% when you remortage in 10 years to pay off the borrowed 15%.
Its a big if, the market need grow
I owe a set amount, regardless of how the value of my property changes.
Lotus Elise 111R
Impreza WRX STi
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3CorsaMeal
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Registered: 11th Apr 02
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this is what i'm looking at doing Robin
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3CorsaMeal
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Registered: 11th Apr 02
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get a brand new house about 100m from where i live now
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3CorsaMeal
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Registered: 11th Apr 02
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100metres not miles
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