Part Rent Part Buy Scheme advice
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Hi Guys,
My partner and I are currently renting and have been for years. We've decided to finally try and get onto the property ladder.
However, neither of us have good credit, we thought the part rent part buy scheme seemed ideal but I can't seem to find out the information I want.
Can anyone help:
Can they help people who have no saving for fees etc?
Can they offer a morgage to bad credit customers with an affordable monthly payment?
Do you have to pay the rent on top of the mortgage fees each month?
If anyone has dealt with this scheme in the past or present could you tell me how it works and if it's ideal for our situation.
We got a quote for a mortgage just over a year ago telling us we could get one for 100% but the monthly payments would be £800+ an we'd also have to come up with a £2,500 for fees etc. which is impossible for us.
My partner and I are currently renting and have been for years. We've decided to finally try and get onto the property ladder.
However, neither of us have good credit, we thought the part rent part buy scheme seemed ideal but I can't seem to find out the information I want.
Can anyone help:
Can they help people who have no saving for fees etc?
Can they offer a morgage to bad credit customers with an affordable monthly payment?
Do you have to pay the rent on top of the mortgage fees each month?
If anyone has dealt with this scheme in the past or present could you tell me how it works and if it's ideal for our situation.
We got a quote for a mortgage just over a year ago telling us we could get one for 100% but the monthly payments would be £800+ an we'd also have to come up with a £2,500 for fees etc. which is impossible for us.
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Comments
When I took out a mortgage for my current property, I incorporated the fees into the mortgage amount, so that may be a possibility.
It's probably unlikely that they will be able to help you with the mortgage. If you have poor credit it is harder to get a mortgage and the fees are higher, try brokers and I believe Abbey are one of the most lenient when it comes to poor credit, I have some and my broker said 'if you can't get it with Abbey then you won't get it with any bank'
Oh and there is rent on top of your mortgage, it can vary. I was looking into shared ownerships a while ago, the rent can vary dramatically! The ones that are council owner tend to be very good, but beware of the housing company ones. I went to look at a property where is was 80% owned, 20% owned by the council and the rent was £2.60 a month! I went to look at a 70% owned, 30% housing association and it was £112 per month rent and service charge a month.
Me and Mr Hud were all for this until we got halfway through and they well and truly pulled the rug out from underneath us !
We were with a company called Genesis Homes and after seeing a house that we fell in love with we went for interviews with them regarding our financial situation. I'm in the same predicament as yourself with regard to bad credit. They said that this wouldn't be a problem (right at the very beginning) and that a mortgage shouldn't be out of reach (although we'd have to pay a little more with regard to interest). This was great to us and we ploughed every bit of spare cash we could into getting the house of our dreams !
We forked out a holding fee to Genesis, £250 for a valuation fee and £250 for solicitors fee's. At the end of November we had our mortgage sorted at an extortionate rate of 9.64% but because we wanted the house we went for it. This all got sent off to Genesis and we waited for 4 weeks for a response to say that everything was going ahead.
On the Thursday before christmas I decided to give Genesis a call and see how things were going when they decided to metion that our mortgage wasn't good enough and had been declined (nice of them to let us know sooner !!).
Everything fell through - we lost all of our money£750 in total and I was seething !!
What they had forgotten to mention (even though I'd told them that I had bad credit and would probably pay a higher interest fee) was that they didn't accept mortgages over 8% - nice of them to let us know before we'd forked out all our money !
This ruined christmas and made us insanely angry as you can imagine ! I spoke to my solicitor who generously gave us the money back and said that if they didn't refund all the deposit and valuation fee she would act on our behalf to sue them ! Needless to say after much tooing and froing we got our money back !
Me and Mr Hud are now going to continue renting and have found a lovely house which is cheaper than we would have been paying anyway !!
Sorry if it sounds like I'm putting a downer on the idea but we really got our fingers burnt and I wouldn't wish it on my worst enemy !
Just make sure you read everything and ask as many questions as you can !
Good Luck
Mrs Hud xxx