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First time buyer, home ownership schemes, advise please !!

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  • First time buyer, home ownership schemes, advise please !!

    I'm an expat, 40 years old and have been living in Japan for the past 15 years. Later this year, I'll be moving back to the UK with my wife and 3 year old son. I'll just briefly explain my situation and then I'll fire away with a few questions!

    In the best case scenario, I will have a permanent job which will initially pay £20 000/year.

    In the worst case scenario, I'll be working for minimum wage and earning roughly £12 000/year. In that situation I'll also be claiming £700/month in benefits. My wife is under immigration control, but under the 'old rules', so getting benefit/government assistance is not a problem. I can afford to pay a £10 000 deposit.

    Ok! Now some questions:

    #1 I heard an old rule of thumb that states that your annual salary must be at least 25% of the price of the house you wish to buy. But, the requirements for the various government 'home ownership schemes' cite these requirements:
    • My household income is less than £60,000
    • I am unable to afford to purchase a home suitable for my housing needs within a reasonable travelling distance of my work place
    • I can demonstrate access to savings or sufficient funds to pay, if required, a deposit (which may be 5% or more of the purchase price), legal fees, stamp duty and other costs of moving.
    • I am able to sustain home ownership in the longer term.
    • I am not already a home owner or named on a home mortgage.
    • I have a good credit history

    Does this mean that 'in my worst case scenario', I could purchase this house?:

    3 bedroom terraced house for sale in Bridport Road, Poundbury, Dorchester, DT1

    or this house?:

    Rightmove.co.uk

    ...using one of the government's 'home ownership schemes'?

    #2 The second link quotes 'Shared Equity £142,796', the scheme used is FirstBuy which works with a 20% loan from the Government and Bovis Homes, purchaser only needs a 5% deposit and a 75% loan-to-value mortgage.

    Does the £142,796 figure represent the 75% loan-to-value mortgage? Or the full price of the house?

    #3 Is it possible to get/use a bank loan for the 5% deposit?

    #4 The 'shared ownership scheme' doesn't seem available for many properties. Is that generally true?

    Thanks in advance,

    Bill
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