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durhamborn

More Lambs To The Slaughter.

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http://www.dailymail.co.uk/money/mortgageshome/article-2732588/We-able-buy-without-deposit-Buyers-mortgage-help.html

Now even the housing associations want to feast on the young and the stupid.

No deposit,but you overpay on the house by a lot EVEN at the crazy prices now.

The way it works is explained below but i couldnt think of a worse deal.

http://www.ownageniehome.co.uk/how_it_works#

So you pay over 30 years.Each 5 year payment schedule is set at the start of the 5 years and looking at things goes up.The example there shows the payments higher each year.So from that i presume each 5 year period will see a steady rise in costs though i cant find that info.It looks like the payments are going up each year with roughly cpi,probably in the small print somewhere.

After 10 years it seems you own 18.5% of the property.So you will of paid around £100k after 10 years to own around £26k of equity "IF" the house price stays stable.If its down to £100k (likely) you own £18.5k.

Can anyone here work out how much things would cost under a repayment mortgage instead of this scheme?

14 years ago in the area 5 years of payments on this scheme would of bought you a 3 bed semi the same cash.So these "buyers" who are so happy are all handing over probably £280k extra to this scheme than had they bought 14 years ago.

Edited by durhamborn

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Can anyone here work out how much things would cost under a repayment mortgage instead of this scheme?

With a 10% deposit down, 6% annual interest rate and no fees added to the mortgage, it would be £971 a month over 30 years (£1,044 p/m over 25 yrs).

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By the time most people on this scheme finally finish off paying the mortgage and owning their own home, it will be time to sell it up and start paying the government of the day for your nursing home.

You see, the system really works! ;)

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"If you decide to sell the shares you have accumulated in your home,Genie has the right of first refusal to buy them from you,however Genie is not obligated to do so.If you cant agree a price with Genie,you can put your property on the open market,at either THE ORIGINAL PURCHASE PRICE OR THE MARKET PRICE -WHICHEVER IS THE HIGHER.

hmm,so in other words if house price fall and you want to sell up Genie gets first dibs on the share you own,but if you wont agree a price you have to market at the original price or the market price IF HIGHER,so if prices have fallen the minimum you can market for is the original purchase price.So once these go into negative equity (first day) you wont be able to sell on the open market.No doubt Genies valuer will be prudent and value at the bottom end.Agree to our valuation or be stuck.

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"If you decide to sell the shares you have accumulated in your home,Genie has the right of first refusal to buy them from you,however Genie is not obligated to do so.If you cant agree a price with Genie,you can put your property on the open market,at either THE ORIGINAL PURCHASE PRICE OR THE MARKET PRICE -WHICHEVER IS THE HIGHER.

hmm,so in other words if house price fall and you want to sell up Genie gets first dibs on the share you own,but if you wont agree a price you have to market at the original price or the market price IF HIGHER,so if prices have fallen the minimum you can market for is the original purchase price.So once these go into negative equity (first day) you wont be able to sell on the open market.No doubt Genies valuer will be prudent and value at the bottom end.Agree to our valuation or be stuck.

"Sue me..."

Edited by kilroy

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"If you decide to sell the shares you have accumulated in your home,Genie has the right of first refusal to buy them from you,however Genie is not obligated to do so.If you cant agree a price with Genie,you can put your property on the open market,at either THE ORIGINAL PURCHASE PRICE OR THE MARKET PRICE -WHICHEVER IS THE HIGHER.

hmm,so in other words if house price fall and you want to sell up Genie gets first dibs on the share you own,but if you wont agree a price you have to market at the original price or the market price IF HIGHER,so if prices have fallen the minimum you can market for is the original purchase price.So once these go into negative equity (first day) you wont be able to sell on the open market.No doubt Genies valuer will be prudent and value at the bottom end.Agree to our valuation or be stuck.

Yes, but at least these savvy home owners will be able to 'get on with their lives'.*

* Insert home owning cliche here

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