From crowded house to space
After completing a teaching degree at Brighton University in 2004, Karen Finch, 24, moved back into her family home in Romford, Essex. The young teacher soon found work at an infants’ school in nearby Ilford. But having lived on her own for four years at college, she was ready to move into her own place.
“After a long day at the school, all I wanted was to come back to some peace and quiet,” she says. “But with three younger brothers at home, that was never going to happen!”
Karen had heard previously about MHO in the context of our new developments. She and boyfriend Mike, 25, were determined to own their home and it wasn’t until they spoke with a mortgage advisor that they realised there was a scheme that would enable them to do just that. Without any deposit, buying a flat on the open market had otherwise looked like an impossible dream.
The Key Worker Living scheme was a government initiative, which aimed to give key public sector workers extra financial assistance to buy a home of their choice on the open market - similar to present day Open Market HomeBuy. In her case, Karen decided to take out an equity loan of £22,000. Under the terms of the scheme, she won’t have to make any repayments until she either stops being a key worker, or decides to sell the property. At that stage, the loan repayment is calculated as a percentage of the house value.
Karen and Mike contacted MHO in September 2005. They were asked to attend an introductory seminar, and told that same day that they were eligible for the scheme. The young couple had already found a flat, which meant they only needed to wait for the chain to complete before exchanging contracts.
Karen’s new home is a modern, 2-bedroom flat in the Rush Green area of Romford. Both she and Mike, who is employed in a steelyard, have an easy journey to work, and look forward to coming back to a quiet, restful home – even if they are just about to start redecorating the flat.
“We’re really pleased with the flat,” says Karen, who moved in on 20th January 2006. “It
has a lovely feel to it, and it’s definitely a lot more peaceful!”
She and Mike were able to raise a mortgage of £128,000 on top of MHO’s £22,000 loan. The flat cost exactly £150,000, giving them monthly mortgage repayments of £818. This, says Karen, is manageable on their combined wages of £42,000.
“Before it made financial sense to be living with my parents because I didn’t want to waste money on rent,” she adds. “But I don’t mind paying this money when it’s going towards my own home.”
Karen also says that dealing with MHO was very easy. Although they decided to wait to the New Year to move in, the couple actually completed the week before Christmas – only three months after their initial call to MHO. And they are both delighted with their new home.
“I never thought I would be able to afford to buy,” Karen smiles. “It’s fantastic to have my own space. I’ve already told other lots of other people at work about the scheme!”
See Karen talking about how she bought a home the affordable way by clicking on the link below (If you have problems viewing this file you may need to download Quick Time, click here).
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- Karen's Story