Hi, i quick question on the goverment home ownership scheem, if i am granted it at 25% for example does this count as a deposit?

Thanks, most grateful for your advice.

There are lenders who will lend the full 75% that you require. Try Nationwide or the Woolwich.

Thanks, say for example i have the 75%, and the goverment put 25%, does the goverments 25% class as a deposit or do i have to add a deposit myself. so if i have a house for 100,000 for example, i have paid 75,000, so does the goverments 25,000 count towards the deposit?

it abit confusing!!

thanks

Hi....the share will not be seen as a deposit I'm afraid. You will still have to find a deposit based on the individual lenders criteria. 3-10% depending on lender although I'm sure that lenders like the Ipswich may still offer 100% of the discount price.

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Regards

Ian

Hi just to give you some advice on the Open Market Homebuyers Scheme. Basically you apply for a loan from the government which can be anything up to 50% of the purchase price. You will have to pay this back like any other loan but at a reduced interest rate and spread over a longer time. This is what you use as a deposit and cannot be used for anything else! So, in other words you cant apply for this scheme and spend it on a car!!

What you do need to bear in mind is that this scheme is only open to first time buyers and has limited funds so you will need to apply early.

Hope this helps.

Just thought Id add that the people who bought our house borrowed 82.5% off abbey and 17.5% of the government and didnt put a penny towards the deposit so they may be worth a try!

How do you go about getting this loan off the goverment? can it be be done in Scotland?