corsaaa_16v
Member
Registered: 8th Feb 06
User status: Offline
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Me and the missus are looking into buying our first house but I have a few questions:
I am 22 and she is 21 and we reckon we have about £1500 cash between us per month for house, bills, food and socialising.
We have seen a really nice house with the following deal:
Own 100% your home for 80% of the price
•No deposit to find!
•No rent on the remaining 20%
•Gets first time buyers on the property ladder
•Helps famillies move up
2 bedroom home from £114,950 - Shared Equity Price ONLY £91,960
Am I right in thinking we would simply need a mortgage for £90k ish on the above deal?
What sort of repayment period would you recommend and what sort of interest rate, trying to get an idea of the monthly payments.
Cheers 
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AndyKent
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Registered: 3rd Sep 05
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I think they're a rip-off tbh, though the price of that one doesn't seem quite so rediculous as those round here......
In any case, you'll need at the very least 10% deposit (possibly more like 15%) and won't be able to have a regular mortgage, will need a shared-ownership mortgage which are a bit harder to come by as not many lenders offer them.
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Conway563
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Registered: 7th Jun 06
Location: Yate, Bristol
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When I was looking at shared ownership mortgages you needed a 10% deposit (on your share, so would be £9k) and rates were round 6% when the market was on it's ass
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BYRON
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Registered: 1st Jun 04
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A friend has a 50% shared equity flat, and after he has paid the mortgage, the rent, service and maintenance charges - it costs more than what Im paying to own 100% of my property of the same value.
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John
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Registered: 30th Jun 03
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Did he have 25% deposit though? That's by far the biggest problem.
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James
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Registered: 1st Jun 02
Location: Surrey
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quote:
Originally posted by BYRON
A friend has a 50% shared equity flat, and after he has paid the mortgage, the rent, service and maintenance charges - it costs more than what Im paying to own 100% of my property of the same value.
That's not really the point TBH. It's never claimed to work out cheaper.
It's aim is to allow people with no deposit get some equity behind them.
I still think it's best to avoid if at all possible.
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Kathryn W
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Registered: 12th Oct 03
Location: Widnes, Cheshire
User status: Offline
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You need to find out if you need a deposit for the mortgage, then how much you will be paying etc..
Our bills alone cost £1400...
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VegasPhil
Premium Member
Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
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That sort of scheme is a Builder incentive where the builder retains 20% of the property value. You have to pay back the 20% if you sell it or 10 years later. Whichever comes first.
They are good because they are not part buy part rent. But if the price goes up over the time period you will still owe 20% to the builder 
You get a mortgage quote for the £91k. That is what you pay.
Corsa 2.0 16v Vegas - Sold
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a_j_mair
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Registered: 23rd Jan 04
Location: Scotland
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first bit of advice, forget the socialising
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BYRON
Member
Registered: 1st Jun 04
User status: Offline
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quote:
Originally posted by James
quote:
Originally posted by BYRON
A friend has a 50% shared equity flat, and after he has paid the mortgage, the rent, service and maintenance charges - it costs more than what Im paying to own 100% of my property of the same value.
That's not really the point TBH. It's never claimed to work out cheaper.
It's aim is to allow people with no deposit get some equity behind them.
I still think it's best to avoid if at all possible.
Maybe so, but there is a bigger picture to consider imo. Im sat there making equity  on 100% of my house, whereas they can only ever make 50% equity as they will never ever be able to afford the other 50%..Not for me ta.
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VegasPhil
Premium Member
Registered: 16th Jan 05
Location: Fareham, Hants Drives: Octavia VRS
User status: Offline
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quote:
Originally posted by BYRON
equity
At least with the shared ownership schemes you can usually buy a 25% stake in the property from the housing association once a year.
With the 80/20 schemes you could buy the other 20% as soon as you can afford it...
Corsa 2.0 16v Vegas - Sold
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deanmcreynolds26
Member
Registered: 15th Sep 03
Location: E46 //M3
User status: Offline
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quote:
Originally posted by corsaaa_16v
Me and the missus are looking into buying our first house but I have a few questions:
I am 22 and she is 21 and we reckon we have about £1500 cash between us per month for house, bills, food and socialising.
We have seen a really nice house with the following deal:
Own 100% your home for 80% of the price
•No deposit to find!
•No rent on the remaining 20%
•Gets first time buyers on the property ladder
•Helps famillies move up
2 bedroom home from £114,950 - Shared Equity Price ONLY £91,960
Am I right in thinking we would simply need a mortgage for £90k ish on the above deal?
What sort of repayment period would you recommend and what sort of interest rate, trying to get an idea of the monthly payments.
Cheers
almost bought a house this way, and you only need the mortgage for the 80% on a standard mortgage, as the builder owns the other 20% and you have up to ten years to pay back at market value, could also pay it off at different stages but again at market value mate ;-)
is a good way to get on the market but i found the house i was looking at i couldnt make much money on in the next 5-10 years so i pulled out, was looking at it as a stepping stone, but actually it wouldve been a bit of a kick in the teeth when i decided in a few years i wanted a bigger house, so something you really need to think about esp if ur planning kids or that?
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Cavey
Member
Registered: 11th Nov 02
Location: Derby
User status: Offline
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quote:
from me in another thread...
"HomeBuy Direct - 70-30% Payment scheme.
You get a 70% mortgage, the government, and the housing developers loan you the rest. After 5 years you pay back at 1.25% (think it's about that) for up to 30 yrs, or re-mortgage and get the full 100% of the house value.
Means that you can get better deals on mortgage becuase it's in theory a 70% mortgage.
But the application process is slow, we've been trying to get a response from them for weeks now and it's like pulling teeth."
Found out today that we've been accepted onto the scheme so meeting our advisor next week to sort out mortgages and get our house purchased!
This was the only way we'd be able to get a house tbh, the mortgage we'll be getting is 121k with a 12k deposit, on a house which has a market value of 190k.
We wanted to get on the housing ladder, mainly because the market bottomed out, and prices will/are slowly rising again, so wanted to get in now, and also, we're paying £500 a month in rent, for an extra £100 or so we could be owning a house instead of paying for someone else to own one.
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