Anyone with a Northern Rock Mortgage...

[Luci]

What schemes?  It seems to me other than part-rent/part-buy there's very little out there for first time buyers.  The market suits the very poor, those up the duff and the very rich.  Anyone in the middle is a bit fucked....

The government scheme for starters? http://www.firstbuyscheme.org.uk/

Also, developers have their own schemes too so its worth enquiring with new developments directly. Thats what I did with mine.

[Samdy Gray]

What schemes?  It seems to me other than part-rent/part-buy there's very little out there for first time buyers.  The market suits the very poor, those up the duff and the very rich.  Anyone in the middle is a bit fucked....

Have a read about shared equity/appreciation. Probably the best option given you don't want to part rent.

[Phil_S]

You are correct. They were giving 100% mortgages and then up to a further 25% as a secured loan.

Incorrect. They were lending at 95% with an additional 30% max or £30,000 as an UNSECURED loan. The unsecured lona was that the same rate for as long as you kept the mortgage, but if you redeemed the mortgage the unsecured rate shot up. In point of fact I believe the default rate with Northern Rock was & is no greater than with any other lender. The problem was caused not in the UK so much as Uk banks buying up mortgage books in the US which contained loads of toxic debt. The mortgage industry in the UK is very heavily regulated now. For example you would not be able to recommend a mortgage based on the commision rate to the advisor & get awat with it. (TVirually every lender pays the same any way.

[Phil_S]

The government scheme for starters? http://www.firstbuyscheme.org.uk/

Also, developers have their own schemes too so its worth enquiring with new developments directly. Thats what I did with mine.

The problem is that the FSA insist that lenders have much more in reserve if they lend at higher loan to values. I believe that if they lend to one peron with a 5 or 10% deposit they have to hold the same reserves as they would need to lend to 6 people with a 25% deposit. Also the rates are penal with anything less than 15% deposit. The Homebuy scheme is ok, but is only available on limited numbers of new build properties. There are two options one being shared equity (where you buy part & have an interest free loan for the rest & the other being shared owbership where you buy part & rent part.

[Samdy Gray]

Incorrect. They were lending at 95% with an additional 30% max or £30,000 as an UNSECURED loan.

Meh, close enough