Government to Boost MyChoice HomeBuy scheme

by Peter Wakeford
Published on 14 May 2009
Government to Boost MyChoice HomeBuy scheme

A government programme to help people get on the property ladder has run out of cash - so the government has pledged to inject more funds.

The government is to provide more cash for the MyChoice HomeBuy scheme, after reports that the initiative had run out of money.

Under the scheme, which is part of the Open Market HomeBuy programme, people trying to get on the property ladder but unable to afford the full deposit for a mortgage will have the difference made up by the government. However, the scheme was found to have run out of money - because too many people had signed up.

According to the Department for Communities and Local Government (CLG), the scheme has so far seen 11,100 completed applications at a cost of £3.5 million since the programme's inception in 2006.

But this popularity has led to people who had previously had an application approved being told that there were insufficient funds for them to buy a property. A spokesman for the CLG said that the government has injected extra cash into other schemes to help first-time buyers.

"We have had a very positive response to our HomeBuy products, especially those through Open Market HomeBuy, which is why we are now providing further funding for the scheme through our National Affordable Housing Programme, to help meet demand," he said.

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Your Comments

LauraC
on 18 Aug 2009 23:26
Just wanted to add, as so many people seem to have had a bad experience. I too found the homebuy agents unhelpful and my IFA useless but I stuck with it, as frustrating as it was, I felt like I was doing everyones job for them. In June this year I moved into my house and its the best thing I have ever done. Maybe I was one of the lucky ones but I think if your determind to get your home using this scheme it is possible. Don't loose hope.
 
emma best
on 1 Jul 2009 10:55
We have been waiting for a long time for funding and they always say there is any.They should help people in differcult situations,and they wont do anything.Dont get me wrong this is a good scheme but why is there never funding? they want to help people but from where im looking it doesnt look like it!!!
 
stuart and anne marie hayward
on 22 Jun 2009 20:44
we have a house ready to move into and are on the reserve list but no one will tell us whether there are any funds left or how long we will have to wait?????
 
Mr Birley - MATHS TEACHER
on 1 Jun 2009 14:52
I JUST QUALIFIED THIS YEAR AND HOPED TO BUY A HOUSE USING THIS SCHEME BUT WHEN I RANG TODAY I WAS TOLD THERE WAS NO MORE FUNDING...I THINK IT IS A DISGRACE THAT SO CALLED SHORTAGE WORKERS DON'T GET THE BENEFITS THEY WERE PROMISED!!
 
KAREN RUDDICK
on 30 May 2009 16:34
1 Week away from completion the lady at the top of the chain who had been accepted for the goverment mortgage deposit scheme, received a letter telling her sorry the funds have run out. What about the other families involved in the chain????? are we to just roll over and say nothing about the expences we have all incure in buying our new homes ??? This goverment should at least see good the applications that were accepted or compensate families who have had their lives crushed at the news that because of them and their financial dissorder we are out of pocket and very distresses. I hope enough people who have been affected by this complain loud enough to get something done. I intend to. What about you ????? We have contacted a local MP in Peterborough and are hoping that something will get done, they shouldn't be allowed to get away with such blatant acts which cause so much misery to us hard working people.
 
dave
on 26 May 2009 19:11
we had been told to find a house asap, and put an offer in and then waited for about eight weeks to find out there was no money left. this was a devistating experiance, when being more or less promised something and then it taken away, this is a good scheme, but a badly arranged system.
 
Melanie
on 22 May 2009 22:35
This scheme is a waste of everybody's time, money and effort. We have been waiting for 8 weeks now to find out if the approved and promised money is actually going to be allocated. The HA don't answer your queries, the IFA's don't know what to say (but are happy to take the money to fund the application), and buyers and vendors in my chain are all very very upset. It is an outrage to get people to have to have an offer accepted and go down a long and expensive route only to be left hanging not knowing if things are proceeding or not. Aaarrrgggghh!
 
Robin
on 21 May 2009 12:47
So if I put in an offer under the scheme today, will there be funding in the near future? That is the million dollar question that no-one will answer me!
 
A Preston
on 19 May 2009 22:01
I only see money been wasted. Great scheme which is such a help for first time buyers but if the government can not follow things through. The sale of houses fail like mine today now lost shed loads of money in fees etc. Dont know what to do for best. Fingers crossed all the useless MP's pay back their expenses and we can have some money back in the system for us hard working folk.
 
ollibolliboo
on 15 May 2009 21:54
Would this cash injection be arranged before or after I lose a second buyer for my home due to the promised funds for my purchase not being forthcoming?? I'd love to know.
 
sarni
on 15 May 2009 19:31
Apparently the Government are not injecting more cash into the My Choice Homebuy scheme but injecting cash into new build schemes which no one wants. Thousands of people have put in applications and have had offers accepted on houses and now I imagine, the majority are going to have to withdraw their offers. This is bad for both vendor and buyer and not the 'boost' for the general economy that the Government wanted. Do this Government actually have any idea of what works or are they still intent on lining their own pockets?
 
Assisi
on 15 May 2009 09:47
Don't pledge cash into 'the other schemes'! Schemes that force these people into buying shares in hugely over-priced developments that you can't flog on the open market and will never return their investment. Finish the scheme you started Gov - help the people you promised to help that had no idea that funding would magically run out whilst they were in the middle of purchasing their property. Stand up and support your people on the scheme that you created!