Well just an update on our situation: after several trips to Nationwide to discuss with the mortgage advisor and constantly being told no i have finally managed to get somewhere. The mortgage advisor at Nationwide was baffled by this but after he did say No several times he phoned one of the underwriters who said ' yes no problem just do it as a remortgage with a shared equity on the property'. I had explained this several times but although the mortgage advisor was most helpful he just had never heard about the scheme before. He was really helpful though and we managed to put the application in for the remortgage. Just had the valuer out today so am hoping everything now goes smoothly and the remortgage goes ahead. Thanks to everyone on here for your help it has been appreciated.

Thanks for your help on this i will certainly try Nationwide and hopefully get something sorted will keep you posted so others in the same position can get some help aswell. Thank you

The mortgage company made the offer to get me to move away from them. I guess they were looking to reduce their mortgages outstanding.

I was with charter mortgages too. Basically it would appear they went bust and sold their mortgages on. When this happens another lender buys their debt off them for a low price. In order to recoup their losses they offered people a discount on their loan if they repayed the outstanding debt. ie if you had a mortgage for £80k and an equity loan of £10k they discounted the £10k if you payed back the £80k either by selling or re-mortgaging. The other lender would probably have bought the debt for less than the £80K. However as it appears your bank have not made you this offer as they are a long standing bank/building society it doesn't really matter.

If you went with the open market home buy scheme you should basically have 3 loans. The morgage, and 2 equity loans, 1 with the lender and 1 with the government. You need to work out how much you owe Yorkshire bank in total including the equity loan and if the value of this house will cover this.

For example if your mortgage is for £80k and your equity loan is for £10k your house needs to be worth £108K for you to be able to re-mortgage. This encorporates the £90k oustanding debt and 20% equity nationwide would need as they will only give an 80% mortgage.

If the value of your house will cover this then nationwide will take this on and have your equity loan with the government running along side.My 4 walls just sign what is called a deed of postponement. As far as I am aware natiowide are the only company that do this at the moment and this was last year? so may not do it anymore. I would contact them and make and maybe make an appointment with a mortgage consultant.

hope this makes things a little clearer?

Hi Tosca

Thanks for replying. I am a bit confused as to why your previous mortgage would offer you 12.5% to move your mortgage is that something they offered you or is that something your broker sorted? Thanks

My mortgage was with charter mortgages, and they offered me the equivalent of 12.5% to move my mortgage elsewhere. Effectively knocking £20,000 of the amount I owed on the mortgage although this was negotiable.

It was complicated but I used a broker who was familiar with the homebuy mortgages.

Try calling VA Mortgages, the guy who sorted me out was Mark.

End result was I fixed mortgage with Nationwide for 5 years, and got rid of the second part of the equity loan.

Hi Jenlb83

Thanks for this I am still stuck in the same position and at the moment with interest rates being low thats fine but I'm worried if the rates go back up. Who was your original mortgage with? mine is with Yorkshire BS. I contacted the mortgage broker again and they said I could only get another mortgage if i took out enough to also pay off the government part of the equity as well as the two parts of the mortgage. What did you mean your mortgage company offered to clear the 12.5% equity loan? Did they just mean if you took another mortgage out to wipe this loan? I will maybe have to contact Nationwide to see if I can get this sorted as I don't want to wait 20 years and then still have the 12.5% to be still paid. Thanks Lishaun

Hi, I bought a house under the exact same scheme in 2007. I have recently just remortgaged with nationwide and have kept my government loan. My circumstances are slightly different as the company my mortgage was with offered to clear their 12.5% equity loan if I closed the account with them. So I wasn't consolidating the loan and mortgage. However providing the value of your house will allow you to borrow the money you need (nationwide will only lend 80%) it shouldn't be a problem. The government just need to sign a deed of postponement which they are quite happy to do! I used the solicitors appointed by nationwide as it was free legal service, they knew exactly what to do and I just had to pay £400 extra for the additional work. Nationwide were the only bank I could find that are happy to keep your government equity loan running along side the mortgage. Hope this helps! :-)

From what i gather you dont specifically need a mortgage for homebuy. You just need one that will accept you having a second charge on the property ie the government.

Hi

I am on the open market homebuy scheme, and just going through a remortgage with a high street lender. It is just with the solicitors at the moment so will let you know if it all goes through. I found my local mortgage advisor didnt have a clue about the scheme, but found one who has dealt with several in the past.

Hello everyone

This reads like a disaster! I am in exactly the same position; looking to consolidate both my 75% mortgage and 12.5% loan with YBS and am at a total loss as to what to do. If you have literally any advice I would very much appreciate it.

I'm sure Zeb would be happy to help, as would I.

Hi Lishaun

Just came across your initial post - we're in exactly the same situation now. Our lender told us that they won't sell any new mortgage products to existing Open Market Homebuy customers!!

Have you managed to remortgage elsewhere now? If so, can you give me any tips / recommendations? We feel rather hung out to dry at the moment..

Cheers

Dan

I would contact another broker. If this one is not any good at communication then you need to find one that is

Hi Zeb, Thanks for the reply. I am not sure which other mortgage lenders do this type of mortgage as now the government has stopped this scheme it seems other schemes are in place no one wants to help. Have approached the broker who originally set me up on the mortgage and they don't even get back to me with any advise. I just wondered if anyone else out there was on the same scheme as myself and has managed to remortgage with someone else. I will try and phone broker again. Thanks again