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OwnHome - helping you buy a home. Places For People 0% interest loan for deposit

£0.00 @ co-operative bank
Ownhome is provided by a partnership between Places for People and The Co-operative Bank. OwnHome is part-funded by the government, and is designed to help people who cannot currently afford to purcha…
gileswendes@hotm Avatar
7y, 9m agoFound 7 years, 9 months ago
Ownhome is provided by a partnership between Places for People and The Co-operative Bank. OwnHome is part-funded by the government, and is designed to help people who cannot currently afford to purchase suitable accommodation, make their first step onto the property ladder.

This is available to first-time buyers, key-workers and those currently renting social-housing earning less that a household income of £60,000 (that is most of us, right?)

Places for People could lend you between 20% and 40% of the value (equity) of your home for 25 years (or the term of your mortgage if shorter). You will not have to make any interest payments on the Ownhome loan for the first five years.

After five years you will be charged a fixed interest rate of 1.75% on your Ownhome loan each year. After a further five years your interest will be increased to a fixed rate of 3.75% for the rest of the Ownhome loan period.

This is interest only and no capital is repaid through these monthly payments to reduce the size of your Ownhome loan. The interest is charged on the original monetary value of the Ownhome loan, so if you originally borrow £25,000 you will pay interest on £25,000 regardless of how much the equity is worth in the future.

This is not a shared ownership scheme. You will be buying 100% of your property, so there will be no landlord and no rent to pay. You will also be able to make any alterations that are permitted under planning and building regulations.

What happens if I can't afford to pay the interest on the Ownhome loan?
Places for People cannot give financial advice, however, before we make a loan we will make a full assessment of your ability to repay us. We will not make an offer unless we believe that it is affordable for you.

However, circumstances do change, and if you get into financial difficulty it is important that you contact Places for People immediately.

What happens if I can't afford to pay back the loan after 25 years?
How much you will need to pay back in 25 years' time is dependent on the housing market. Nobody knows for sure what the market will do, but you may have to pay us substantially more than you originally borrowed.

THE GREATER THE INCREASE IN THE VALUE OF YOUR HOME, THE MORE YOU WILL HAVE TO PAY BACK.

You will need to have a repayment strategy, which Places for People will discuss with you when you apply for an Ownhome loan.

How do I know if the Ownhome loan is suitable for me?
Places for People cannot give you financial advice. If you feel you need further guidance we recommend that you seek financial advice from an Independent Financial Adviser. Your local HomeBuy Agent can give you details of Financial Advisers with a knowledge of equity loan products.

Who are The Co-operative Bank?
The Co-operative Bank, including smile, is part of The Co-operative, the UK's largest consumer co-operative.

The Co-operative Bank is the only UK high street bank with a customer-led Ethical Policy. They take a stand on issues such as climate change, the arms trade and human rights.

By providing excellent service, competitive products and a choice of ways to access your accounts, they consistently prove that ethics and success can go hand in hand.

How does the mortgage fit withinthe Ownhome loan scheme?
Ownhome is a package delivered in partnership by Places for People and The Co-operative Bank. Once you have qualified for an Ownhome loan with Places for People, you can apply for a mortgage from The Co-operative Bank to cover the rest of the cost of your new home.

What sort of mortgage can I get?
If you qualify for the Ownhome loan, you can choose from a range of simple and flexible mortgages available from The Co-operative Bank.

You can choose between a fixed, discount or tracker mortgage that best suits your circumstances, on a repayment basis for up to 35 years.

There are no additional premiums, fees or charges for being an Ownhome customer.

All mortgages are subject to status and affordability.

What sort of valuation do I need?
You will need to get a full building survey. The Co-operative Bank will guide you through the complete mortgage process.
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gileswendes@hotm Avatar
7y, 9m agoFound 7 years, 9 months ago
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#1
I bet this is England and Wales only!
#2
That link is broke :(
#3
Fixed!
#4
http://www.ownhome.co.uk/cfscombi/img/ohome/logop.gifhttp://www.ownhome.co.uk/cfscombi/img/ohome/logoh.gif
#5
Apparently this scheme has very limited availability and they are picky with who they let have it, on what terms and even on what house you can buy.

http://www.communities.gov.uk/housing/buyingselling/ownershipschemes/homebuy/HomeBuyDirect/

This scheme is offered by a lot of developers with a 25-75% share and no deposit required.
#6
Nice one:thumbsup:
#7
spider1986
Apparently this scheme has veyr limited availability and they are picky with who they let have it, on what terms and even on what house you can buy.

http://www.communities.gov.uk/housing/buyingselling/ownershipschemes/homebuy/HomeBuyDirect/

This scheme is offered by a lot of developers with a 25-75% share and no deposit required.



That sounds like anecdotal evidence.

Two friends have been accepted so it isn't THAT fussy.

Why not try?

This isn't only for new builds and it isn't a part-share - you have 100% ownership as the result of a very large, interest free loan (for five years) I think it's 1% after that for the life of the mortgage.

No deposit is required. If I was a first time buyer I would definately be using this. Hopefully it will help out somebody that is prepared to ignore the cold votes...
#8
thanks...just what ive been after...voted hot
#9
Can't get on the site?
#10
'I think in the current climate you are better off waiting a year or two and saving a bigger deposit. Rather than owning 70% of something that is dropping in price.'

quoted from moneysavingexpert.co.uk.
#11
PennysMakePounds
'I think in the current climate you are better off waiting a year or two and saving a bigger deposit. Rather than owning 70% of something that is dropping in price.'

quoted from moneysavingexpert.co.uk.


You own all of it. Not 70%.

You have a loan and a mortgage - the loan is interest free.

I would take advantage of this if I was renting - the small amount the house might fall in value by is likely to be offset by the interest on a large loan that you get for nothing.
#12
[email protected]
That sounds like anecdotal evidence.

Two friends have been accepted so it isn't THAT fussy.

Why not try?

This isn't only for new builds and it isn't a part-share - you have 100% ownership as the result of a very large, interest free loan (for five years) I think it's 1% after that for the life of the mortgage.

No deposit is required. If I was a first time buyer I would definately be using this. Hopefully it will help out somebody that is prepared to ignore the cold votes...


Definitely worth a try :)
#13
PennysMakePounds
'I think in the current climate you are better off waiting a year or two and saving a bigger deposit. Rather than owning 70% of something that is dropping in price.'

quoted from moneysavingexpert.co.uk.


You own 100%! Didn't you have that pointed out to you on numerous occasions in the other thread?
#14
[email protected]
You own all of it. Not 70%.

You have a loan and a mortgage - the loan is interest free.

I would take advantage of this if I was renting - the small amount the house might fall in value by is likely to be offset by the interest on a large loan that you get for nothing.


You own 100% when you have paid for the remaining 30% not a minute sooner. How they can say you own 100% of the home with this scheme is ridiculous!
banned 1 Like #15
[email protected]
You own all of it. Not 70%.

You have a loan and a mortgage - the loan is interest free.

I would take advantage of this if I was renting - the small amount the house might fall in value by is likely to be offset by the interest on a large loan that you get for nothing.


not strictly true, you only ever own 70% of the value of the property, unless you repay the other 30%, well strictly speaking you dont own any of it, you only get back what you have put in pplus whatever profit is made, but you will only get 70% of profit


Havent voted ether way on this, its a great pointer for those looking but not sure its such a great idea, most people buy to have a home i agree, but if they have to share profit it will also make it harder to move up the ladder, only my thoughts on it
#16
spider1986
You own 100%! Didn't you have that pointed out to you on numerous occasions in the other thread?


If you own 100% of something, when you sell it you should get 100% back?

Is that right or wrong?
#17
sassie
not strictly true, you only ever own 70% of the value of the property, unless you repay the other 30%, well strictly speaking you dont own any of it, you only get back what you have put in pplus whatever profit is made, but you will only get 70% of profit


Thank you..some one with some sense :thumbsup:
#18
PennysMakePounds
Thank you..some one with some sense :thumbsup:


I think the main point is that you never share ownership. You never pay rent on 30% - you pay interest (eventually and if you decide to keep it)

Hardly any homeowners actually own their properties by your logic since most have a mortgage! I own about 20% of mine at the moment but in real terms it's mine 100% - I can even paint the walls and put up shelves if I want!

:)
#19
You never share the profit either.
#20
PennysMakePounds
If you own 100% of something, when you sell it you should get 100% back?

Is that right or wrong?


You own 100% of it as there is only you on the deeds and you don't have to pay any rent on the remaining share with these schemes.

Look at it in terms of a mortgage. You borrow the money so the money isn't yours, it is being lent by a bank. The same goes with the remaining share but that percent of the loan is interest free.

If you get a 100% mortgage you own 100% of the house even though you are borrowing all the money.

With the 70-25% share, you own 100% even though you are borrowing all of the money. The only difference is that the money is coming from two different places and you don't pay interest on 25% of it.
#21
PennysMakePounds
If you own 100% of something, when you sell it you should get 100% back?

Is that right or wrong?


Exactly right - but with homes most people are paying off a loan called a mortgage - this is simply a way of raising a 100% mortgage by some being a loan at a very low rate and some as a standard mortgage.
banned#22
I think anyone should think really carefully before entering into thsi, and im sure most do, buying in to use this as a stepping stone to get onot the real market (so to speak, as in buying older homes) is a little risky, also new homes after a few years do not resell as well as older homes, so you may end up stuck in a home you thought you where using as a stepping stone, again just my thoughts
1 Like #23
spider1986
You own 100% of it as there is only you on the deeds and you don't have to pay any rent on the remaining share with these schemes.

Look at it in terms of a mortgage. You borrow the money so the money isn't yours, it is being lent by a bank. The same goes with the remaining share but that percent of the loan is interest free.

If you get a 100% mortgage you own 100% of the house even though you are borrowing all the money.

With the 70-25% share, you own 100% even though you are borrowing all of the money. The only difference is that the money is coming from two different places and you don't pay interest on 25% of it.


+1 !
#24
Think we're fighting a losing battle here OP lol.
#25
sassie
I think anyone should think really carefully before entering into thsi, and im sure most do, buying in to use this as a stepping stone to get onot the real market (so to speak, as in buying older homes) is a little risky, also new homes after a few years do not resell as well as older homes, so you may end up stuck in a home you thought you where using as a stepping stone, again just my thoughts


This isn't for new homes only.

(Does anyone else get the feeling I'm repeating myself?)
#26
spider1986
Think we're fighting a losing battle here OP lol.


LMAO! See /\
banned#27
[email protected]
You never share the profit either.


If you sell your home: You can move whenever you choose to. When you move you will have to repay the full Ownhome loan. The amount you owe Places for People will be calculated on the value of your home when you repay the loan. You will have to pay any legal fees associated with the transaction.
#28
[email protected]
LMAO! See /\


Lol, at least we're happy with what we're getting!

I get the keys to my new house in an hour so no-one's going to put a downer on these schemes for me!
#29
spider1986
Lol, at least we're happy with what we're getting!

I get the keys to my new house in an hour so no-one's going to put a downer on these schemes for me!


It's a great feeling isn't it?
#30
spider1986
You own 100% of it as there is only you on the deeds and you don't have to pay any rent on the remaining share with these schemes.

Look at it in terms of a mortgage. You borrow the money so the money isn't yours, it is being lent by a bank. The same goes with the remaining share but that percent of the loan is interest free.

If you get a 100% mortgage you own 100% of the house even though you are borrowing all the money.

With the 70-25% share, you own 100% even though you are borrowing all of the money. The only difference is that the money is coming from two different places and you don't pay interest on 25% of it.


With a Mortgage, what ever you sell it for is yours.

HomeBuyer, what ever you sell it for you have give the builder back what ever % you took from them.

In my books, regardless of what anything says, i do not own 100%
#31
sassie
If you sell your home: You can move whenever you choose to. When you move you will have to repay the full Ownhome loan. The amount you owe Places for People will be calculated on the value of your home when you repay the loan. You will have to pay any legal fees associated with the transaction.


Fair enough- this isn't something that I've had the option to use myself but I do think it's the best option for those that can take advantage of it.
banned#32
spider i wasnt rying to put a downer on anyone, as i said i think for some this is going to be a good oppurtunity, i just dont think its as great as its cracked up to be
#33
[email protected]
It's a great feeling isn't it?


It's pretty exciting, especially knowing that I only have to pay £360 a month for a brand new 3 bedroom house due to a scheme like this one :whistling:

Lol.
#34
[email protected]
LMAO! See /\


I think people associate these schemes with new homes only....It would be great people researched these things properly.

Anyways it is down the individual whether they think this scheme is worth going for or not!

To me it makes sense to get and interest free loan which will cover 25% of the property rather then getting a 90% mortgage and paying 5.5% interest or more!!!!! as long as you do your finances and calculations correctly it shouldn't really be much of an issue!
#35
sassie
spider i wasnt rying to put a downer on anyone, as i said i think for some this is going to be a good oppurtunity, i just dont think its as great as its cracked up to be


It's ok, no offense taken at all! Like I said, I'm a happy bunny today so I'm enjoying defending my pretty new house and the deal that I've got.

It's helping me pass the time anyway lol :)
#36
PennysMakePounds
With a Mortgage, what ever you sell it for is yours.

HomeBuyer, what ever you sell it for you have give the builder back what ever % you took from them.

In my books, regardless of what anything says, i do not own 100%


Part buying you pay rent and don't have complete freedom in your property - with this you do. I think it's worth investigating as you expressed frustration that there were no options and nobody would give you (or anyone else) a mortgage - I'm offering a potential solution (if you want to look into it)
#37
sassie
spider i wasnt rying to put a downer on anyone, as i said i think for some this is going to be a good oppurtunity, i just dont think its as great as its cracked up to be


Hopefully it'll be right for somebody - I would certainly be looking into it a little more if I found that I couldn't get a straight mortgage due to deposit.
banned#38
Abz
I think people associate these schemes with new homes only....It would be great people researched these things properly.

Anyways it is down the individual whether they think this scheme is worth going for or not!

To me it makes sense to get and interest free loan which will cover 25% of the property rather then getting a 90% mortgage and paying 5.5% interest or more!!!!! as long as you do your finances and calculations correctly it shouldn't really be much of an issue!



I had as i thats what most equity schemes are, having read it i now realise it isnt, although i doubt many will be on the open market, most will go for a new buy.

I think many will go for what they think is great and maybe in 5 years have big regrets, maybe they will, maybe they wont, was just putting my opinions across, in, i hope, a friendlly manner


Oh and to spider, i wish you and your partner well in your new home, hope you enjoy x
#39
spider1986
Lol, at least we're happy with what we're getting!

I get the keys to my new house in an hour so no-one's going to put a downer on these schemes for me!


Congrats, at least you happy :p

Im probs just on a downer today because i can't get what i want. I think i will summarise buy saying: For me personally this is not a good deal. For other people with less savings than me it is an option :-D
1 Like #40
I personally am terrified at the implications of them effectively having shared equity in the property.

This ISNT a shared ownership scheme, but in fact works almost exactly like a shared equity scheme.

these schemes are GENERALLY much better than shared ownership. However, this one has the big catch in that you must pay then 20-40% of the value of the property in 25 years. This is not a good position to be in - either enforcing the sale of the property at this time, or a massive one off payment, probably resulting in a remortgage on this chunk anyway.

I can see the benefits, but really this is about making home ownership available to those who CANNOT and therefore SHOULD NOT be affording it.

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