Homebuy Scheme

[CheGuevara]

Originally Posted by Ed

...for the double pram

Hahaha -will probably be true -twins run in my wife's family...

Is the home-buy a half buy/ have rent scheme? If so.... Its what ive done

[CheGuevara]

Originally Posted by Stuuk1

Is the home-buy a half buy/ have rent scheme? If so.... Its what ive done

I think there are variations, but the one here is just a free (for 5 years) and then cheap (starts at 1.75% in year 6) loan for up to 30% of the price of the house. The loan is made by both the govt and the developer who share an equity stake in the home, although you hold the title to the home.

Anyone else done this?

I really don't want to buy a new build, my rental place is a new build about 10 years old the quality can only be described as sub standard this place has pretty much no isnulation I can hear the neighbours fart and hear the fridge in lounge

Has anyone sold a house on the equity loan scheme, does that make the sale process more complex espically if you are in a chain?

Can you buy a place on the open market?

I wouldn't live in London as most of the key buyers stuff seems to flat in blocks, so on top of everything you pay a service charge which I'm not keen on. I have frineds who have to pay a service charge its a lot more money not too metion when they decide work needs doing and they $1000 (my pound sign doesn't work) from each person to pay for it.

The part buy/rent scheme I wouldn't use, I have heard not much good about that at all.

[Stu]

Originally Posted by CheGuevara

I think there are variations, but the one here is just a free (for 5 years) and then cheap (starts at 1.75% in year 6) loan for up to 30% of the price of the house.

I'm glad I struggled to buy my own house

[hindle8907]

ok guys well me and my partner have been renting a £650 apartment for the last 2 years,
So when i saw the post i had a look into the scheme and gave them a ring we have been and looked at few properties and we are interested in one, we are first time buyers and are awaiting a call back from a financial advisor to discus the mortagage options and repayments,
seeming as we are only in our early 20's well im 21 my OH is 22 do you think getting a mortgage over 30-35 years is a bad idea ? because i don't think we can afford to get it over 25 years on our current income

Cheers Ant.

[CheGuevara]

Originally Posted by metalmonkey

Can you buy a place on the open market?

I believe they had allocated part of the funds for open-market purchases, but it seems it's been over-subscribed. AFAIK know it's just new builds.

Originally Posted by hindle8907

ok guys well me and my partner have been renting a £650 apartment for the last 2 years,
So when i saw the post i had a look into the scheme and gave them a ring we have been and looked at few properties and we are interested in one, we are first time buyers and are awaiting a call back from a financial advisor to discus the mortagage options and repayments,
seeming as we are only in our early 20's well im 21 my OH is 22 do you think getting a mortgage over 30-35 years is a bad idea ? because i don't think we can afford to get it over 25 years on our current income

Cheers Ant.

basically yes its a bad idea - if you can afford £650 a month rent then you'll be able to afford a decent mortgage over a 25 yr term. and you always have the options to pay in more if you can. You can be mortagage free by 46! then pump it all into a good pension.
To rent my place is about £450-550pcm mortgage is £272 + 83 council tax but best to talk to your advisor i would go for as short a time as possible

[CheGuevara]

Originally Posted by hindle8907

do you think getting a mortgage over 30-35 years is a bad idea ? because i don't think we can afford to get it over 25 years on our current income.

I suppose if you did that for a few years while waiting for your incomes to rise it wouldn't be too bad, and then shorten the term when you can. Otherwise I'd probably look at a cheaper place. The general guideline I've read is absolutely no more than 30% of your gross household income.

Make sure you give yourself enough leeway for a rise in interest rates as well.

Usually the payments don't climb all that much if you drop the term by 5 years or so, but the differenct in the amount of interest you pay over the long term can be staggering. I know a couple back home who bought some really large homes a few years back on the "Never, Never Plan" - 40 year mortgages with little or no deposit. I'm sure they will have paid for the houses a few times over when (if) they pay them off.

Borrow over a short period as possible.

Our mortgage is fookin huge and I occasionally regret it.