Anyone got a LIFT mortgage in Ediburgh or Scotland

Lartyconshayo · 8 Mar 2013 at 20:18

http://www.scotland.gov.uk/Topics/Built-Environment/Housing/BuyingSelling/lift/FTBOMSEP

We are trying to get on the ladder. I did apply last year but never recd application. Then some personal stuff got in the way so decided to leave it. Don't really have much in savings at moment but will have a rolling cash injection from 2014 ( sharesave maturing ) should be about £4000 to start then £3000 for next two years. But currently we pay £550 no bills incl for a 2 bed apt in Edinburgh ( me partner and child ) . Thinking that mortgage even if only 60% equity will be better than nothing

Anyone done it ? I'd be looking to see what sort of deposit the bank wanted and what other costs you had , fees etc ?

Biohazard · 8 Mar 2013 at 20:22

Shared equity?

Yes some of the new developments over recents years have had x amount of houses set aside for that purpose.

Go to ESPC in George Street and ask them, that's your best bet they'll be able to point out any properties available within the scheme and also answer any queries you have.

Best of luck.

Lartyconshayo · 8 Mar 2013 at 20:29

it's really for the open market which is available now to anyone. Not just new build developments. any prop anywhere in scotland

big_white_dog84 · 9 Mar 2013 at 00:23

Haven't read the details on this so apologies if this is nonsense....

I avoided these shared equity schemes when I was first time buying a couple of years ago. My understanding is that at the end of the period you have to pay the remaining percentage based on the value of the house at that time, not its value today. This could be so much that the only way I could see to pay it was to sell the house.

In my opinion if you can't afford it as a repayment mortgage over 25 years don't buy it. The market is still too high, and schemes like this are only serving to prop it up.

aln · 9 Mar 2013 at 00:26

djferrick said:
http://www.scotland.gov.uk/Topics/Built-Environment/Housing/BuyingSelling/lift/FTBOMSEP

We are trying to get on the ladder. I did apply last year but never recd application. Then some personal stuff got in the way so decided to leave it. Don't really have much in savings at moment but will have a rolling cash injection from 2014 ( sharesave maturing ) should be about £4000 to start then £3000 for next two years. But currently we pay £550 no bills incl for a 2 bed apt in Edinburgh ( me partner and child ) . Thinking that mortgage even if only 60% equity will be better than nothing

Anyone done it ? I'd be looking to see what sort of deposit the bank wanted and what other costs you had , fees etc ?

I did it (not in Edinburgh but close enough). Whatever LIFT pays counts as your deposit. So basically I pay less than £300 a month for a loan which started out as about 60% of £120,000. The bank assumes I own the other 40% so my interest rate is like 2.9% or something.

Not every bank will do this for you though, so you need to basically call and ask. I paid a mortgage adviser about £300 quid to do it for me. My sister and her husband are also on LIFT and sorted it themselves (probably the better idea, but meh).

big_white_dog84 said:
I avoided these shared equity schemes when I was first time buying a couple of years ago. My understanding is that at the end of the period you have to pay the remaining percentage based on the value of the house at that time, not its value today.

It's not really a typical shared equity scheme. When I did it, it was no money down and you get the option of buying back their share at certain points. However you never need to do that and they'll take whatever percentage they own when you sell the house.

It was basically a win/win, obviously read the terms you sign though, because they can and have changed* since I done it.

* My ex's sister got on it after I told her about it, but by the time she was applied / was accepted she needed either 5% or 5k, I'm not sure which.

Lartyconshayo · 9 Mar 2013 at 11:19

thanks. That's waht I was looking for - patic the bit about the mortgage advisor. Justa local independent guy was it ? My dad was a mortgage advisor but he died last year . From what I can see the scheme appears to be on hold somewhat acc to the page on gov website

It doesn't say specifically on the websiet that any money is required but they do say that the banks may require a token deposit

aln · 9 Mar 2013 at 13:49

djferrick said:
thanks. That's waht I was looking for - patic the bit about the mortgage advisor. Justa local independent guy was it ? My dad was a mortgage advisor but he died last year . From what I can see the scheme appears to be on hold somewhat acc to the page on gov website

It doesn't say specifically on the websiet that any money is required but they do say that the banks may require a token deposit

Local guy from yourmove. The initial advice was actually free but he worked as an intermediary between myself and the lawyers, helped me navigating through the bidding of two houses, chased people up, and called me at the end of my first mortgage term to re-advise me. I could have probably saved myself the £300 but he did save me a lot of faffing about so I'm not overly bothered about it.

Also like I said, the terms might have changed, but if we're back to a mostly no money down scheme which will result in you paying about half your rent per month for 60% ownership of a property, I can't see how thats not better than renting. For the record, I purposely only went for 60% ownership on the basis of getting lower mortgage rates.

On the buy back, unless you think you want to stay there, or that house prices will rise sharply, you're probably best ignoring the buy back and just overpaying your own mortgage.

Lartyconshayo · 9 Mar 2013 at 20:29

Thanks. I think with that in mind I'll wait until I have a little lump next June to cover fees etc also will have cleared off a loan which will be better for me seeing the bank.

The wording states that you must apply for the maximum loan you can get and LIFT makes up the rest. But from what you say it sound like you took an option to have a 60% stake on a £120,000 property and they ponyed up £48,000 in a holding account . Or was it more that like you said you had a piece of paper saying you had a LIFT agreement so a paticular bank chose to look at that as your deposit ? I still am curious exactly at what point you knew what share you would take. Because from my reading of it I would have to see what the maximum mortgage I could get from the bank was and then inform LIFT and they would agree to pony up the rest....

Also on another note. Did you haggle on the property ? Is there room for haggling within the LIFT procedure ?

aln · 9 Mar 2013 at 22:13

djferrick said:
Thanks. I think with that in mind I'll wait until I have a little lump next June to cover fees etc also will have cleared off a loan which will be better for me seeing the bank.

The wording states that you must apply for the maximum loan you can get and LIFT makes up the rest. But from what you say it sound like you took an option to have a 60% stake on a £120,000 property and they ponyed up £48,000 in a holding account . Or was it more that like you said you had a piece of paper saying you had a LIFT agreement so a paticular bank chose to look at that as your deposit ? I still am curious exactly at what point you knew what share you would take. Because from my reading of it I would have to see what the maximum mortgage I could get from the bank was and then inform LIFT and they would agree to pony up the rest....

Also on another note. Did you haggle on the property ? Is there room for haggling within the LIFT procedure ?

Straight away I told my advisor I didn't feel I could afford a loan over $x and we rolled with it. Who's really going to check/know any better?

djferrick said:
Also on another note. Did you haggle on the property ? Is there room for haggling within the LIFT procedure ?

You can haggle but I didn't. You only get a set period where you can use LIFT and I had my first offer fall through I went straight on the asking for the house I actually got. It shouldn't really be any different from buying a house normally (besides the rules LIFT set out).

Lartyconshayo · 10 Mar 2013 at 00:19

Right. Thanks a million for this.

aln · 10 Mar 2013 at 00:27

It takes a while to get accepted you know, I had to wait several months. You should be sharpish with the application because not everyone is accepted.

Lartyconshayo · 10 Mar 2013 at 08:00

I don't have a bean to spare at the moment. And it appears to be on hiatus possibly ? I don't want to put myself in an uncomfortable position. I think about march of next year should be time enough to get the ball rolling.

Thanks for all the advice.

Lartyconshayo · 13 Apr 2013 at 10:06

LIFT now appears to be open again for all Scottish people. Thinking I might cash out me sharesave early and get on the ladder !