Anyone got a house on the homebuy/jumpstart scheme?

Glaucus

Glaucus

Glaucus

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has anyone bought a house recently on the homebuy/jumpstart scheme. where the developer pays 30% of the house and you have to pay it back or sell within 10 years?

How have you found the process.
I assume you have to use special mortgages what are these likes, what rates and payments are you making?
and anyother comments.
 
Under the other comments part;

Do not buy a new build. Financially a rubbish idea compared with somewhere with value add. Hold out for a genuine deal on a repossession of somewhere which needs renovating, your first house will usually not be a house to keep, so a new build makes zero sense.
 
what you say is true and I know that. however it is unlikely but not imposable for me to save up the deposit required. The good thing with the scheme is if you sell with in the 10 years. you only pay back 30% of the house price. regardless if it has gone or up and of course the 30% loan is interest free for 5 years, then 3% for the next 5 years.
 
AcidHell2 said:
has anyone bought a house recently on the homebuy/jumpstart scheme. where the developer pays 30% of the house and you have to pay it back or sell within 10 years?

How have you found the process.
I assume you have to use special mortgages what are these likes, what rates and payments are you making?
and anyother comments.
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Personally I would rather recommend clients saving up a deposit rather than having to get a mortgage and pay "rent" to the developer to buy back the other portion of the house.

A standard mortgage + good deposit will actually be cheaper than the homebuy scheme in the long run.

I would only recommend the homebuy if people NEED a house.
 
Sash said:
I would only recommend the homebuy if people NEED a house.
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Indeed. This is a scheme designed for people whom are often fairly uneducated in terms of the housing market, who want/need a property now.

Think about it if you need somewhere to live, not as an investment idea. As an investment you would be better buying somewhere low end with value add on a small deposit.

That said, we do not know the full terms, i can imagine developers are probably having a hard time at the moment so its possible that it may not be as bad as these deals have been historically.
 
AcidHell2 said:
You don't pay rent.
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I used "rent" as a loose term. You mentioned you had to pay the developer over 10 years I am assuming you would want to do this monthly rather than in a lump sum. So it would effectively be rent.
 
Sash said:
I used "rent" as a loose term. You mentioned you had to pay the developer over 10 years I am assuming you would want to do this monthly rather than in a lump sum. So it would effectively be rent.
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Nope you can buy in 5% stakes and upwards. How you fund and when you pay that is upto you.
 
AcidHell2 said:
Nope you can buy in 5% stakes and upwards. How you fund and when you pay that is upto you.
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Ah right its a slightly different scheme than what we can do up here.

Well, as I said before, unless you absolutely need a house now, you should consider just saving for a deposit now and buy later.

Or

You buy a house now with the view of getting a higher salary in the next few years, at which point you will have the sale of the house and a deposit also to buy a house you want.
 
Acid, I've been looking into doing this as well. I know a little bit about the scheme (same as you basically).

However, there is another government scheme for first time buyers, but it doesn't have to be put towards a new build, it can be put towards a used house. Check that out. I can't remember the name of it of the top of my head, but my financial advisor knew of it and gave me some information.

It defiantely makes more sense to buy a used house, than a brand new one as said above.
 
hilly said:
However, there is another government scheme for first time buyers, but it doesn't have to be put towards a new build, it can be put towards a used house. Check that out. I can't remember the name of it of the top of my head, but my financial advisor knew of it and gave me some information.
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Unfortunately that is for key workers only. Police, nurses and the likes. That would be ideal.
 
I forgot to say dont do anything we say without speaking to a financial adviser who knows your background and your figures lol
 
Are those mortgage advisors actually there to help YOU, or to help themselves. I'm assuming they get some kind of comission from lenders, or something. I know they charge some kind of fee, but I've only really talked to one months ago.
 
Jono said:
Are those mortgage advisors actually there to help YOU, or to help themselves. I'm assuming they get some kind of comission from lenders, or something. I know they charge some kind of fee, but I've only really talked to one months ago.
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The procuration fees for mortgages aren't that much tbh.

Where I used to work the lenders would pay very little commission from the sale and they didnt usually even cover the admin and advice work done.

We would have to get more money from selling insurance (which is actuall needed "just in case") to cover the mortgage debt.
 
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These arn't bad at face value.

The equity of the builder means you dont need a deposit as such and many lenders will see the portion you borrow as the LTV so you end up jumping into a much lower interest banding, ie 75% with Bloor Homes.

Only problem is if the lender disagrees with the valuation the devloper has.

£250k house you need a 187.5k and pay back at a nice 4.3% with the 25% they have having no charges at all. Then the lender (typically nationwide) will rock in and value the house at £215k and pretty much snooker the deal going through.
 
AcidHell2 said:
Unfortunately that is for key workers only. Police, nurses and the likes. That would be ideal.
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Might be worth checking out, I'm elligble in that case any ways, but there is a seperate government scheme for FirstTime buyers, but which aren't new houses.

I'll try and find some more info for you Acid.
 
AcidHell2 said:
wow. will have to give them a call.
Anyone know what the questions are?
Anyone know if any other banks do this?
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I think it is a government backed scheme (but I am only basing that on the fact that it is mentioned on the directgov website http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_066591) and I think I read that it was only with the co-op.

I don't know any more about it other than that.

Edit: I also remember my sister (who looked into it) saying that they will only allow you to buy a house with 1 more bedroom than you need, so for a couple you get 2 bedrooms, a couple and child = 3 bedrooms etc.
 
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just phoned up they have a 10 week waiting list for the phone interview thing, but they've put my name down on it. In the mean time they are sending my a brochure.
That would be fine on my own so 2 bed house would be fine..
Have to wait and see if I qualify.
 
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