Anyone get a mortage through the Moat scheme - they pay 25% as deposit?

[MammyShirl]

www.moat.co.uk
all you need to apply

1. be on the housing register
2. have £3000 for legal fees housing advice told me about the scheme, you need the above to apply, you choose a property, if they agree they pay 25% of the price as the deposit and then when you sell the property you pay them back 25% of the sale price. sounds too goo to be true.

im hoping to pay my debts off first, save £3000 and then give it a go.... then again me? save £3000?

sorry forgot to ask if anyone has done this scheme?

£3K fees seems like quite a lot to me but hopefully you will get some decent advice.

Be careful. This could cause similar problems to some equity release schemes. As an example, if you buy a property now for £50k, they will pay £12.5k. If prices double in the next 5 years (which has happened in the past) when you come to sell you will only receive £75k, whilst they get back 25k. And you may well find that your £75k will not be enough to get you a similar property to the one you sell.

A far better idea would be to either use one of the mortgage companies which specialise in 1st time buyers and are willing to give 100% mortgages, or to try to buy through a shared ownership scheme. I would always be very wary of any non charitable organisation that claims to be trying to help you ave moeny - they are actually only trying to make themselves money.

Does the £3000 include stamp duty?
My gut feeling is that it's probably a decent scheme if you will have trouble getting onto the housing ladder, but

1. When you scrape the £3000 together, look closely to see if there are competing products just as good or better.
2. You might be able to find someone at the CAB who can advise if it's a reputable scheme.
3. When you pay legal fees.. is that you pay them or you find & pay a soliciter who will charge you £3000? In the latter case, the soliciter would be acting on your behalf and would be obliged to inform you if the scheme wasn't legit or in your best interests (to their knowledge).

I can (or you can) ask on www.moneysavingexpert.com (you don't need to register or anything... look for their chat section, mortgage board) about this scheme. There are several mortgage brokers who give free advice on that site and other regular posters there who will have good savvy opinions for you.

thanks for all your advice!
im not exactly sure what the £3000 includes, asll i know i know is that is the only money you need at the beginning to joing the scheme.
zebra - ill take a look at the website you suggested.

hi zebra
im confused
i put forward two questions this morning on the website you suggested and i went on now to see if i had any replies and my questions have gone?!?!

There's a reply to your complaint about it on moneysavingexpert.com, though -- seems the site went down? It's a bit of a dodgy server (not dodgy people, just not very reliable) Probably just persevere & try posting again! I notice it's quietist early in the mornings.