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The help to buy scheme.

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Help to Buy equity loans are open to both first-time buyers and home movers on new-build homes worth up to £600,000.

You won’t be able to sub-let your home if you use this scheme.

How it works

With a Help to Buy equity loan:

  • you’ll need to contribute at least 5% of the property price as a deposit
  • the government will give you a loan for up to 20% of the price
  • you’ll need a mortgage of up to 75% to cover the rest
Example For a property worth £200,000 Amount Percentage Cash deposit £10,000 5% Equity loan £40,000 20% Your mortgage £150,000 75%

If the home in the table above sold for £210,000, you’d get £168,000 (80%, from your mortgage and the cash deposit) and pay back £42,000 on the loan (20%). You’d need to pay off your mortgage with your share of the money.

 

 

is anyone from here jumping on this?

 

 

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I'm hoping to jump on the ladder asap. Was looking at a buy-to-let mortgage but the deposit is too high.

Help to buy looking real nice

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Im going for shared ownership cos I found the perfect place using that scheme.

Both have their drawbacks but from the research I've done, if you have the salary to back it, help to buy is generally a better option. (People don't tend to like dealing with housing associations & you can get a decent rate mortgage without the usually required massive savings)

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Help to Buy Phase 2 where you dont have to buy new builds is something that is tempting me.

 

I only recently bought my 1st property but i may hold onto it for a few years and upgrade towards the end of the Help to buy scheme

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Yeah looking to jump on this end of next year.

 

Heard it goes on till 2015 so no rush

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Hopefully may jump on towards the end of next year

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That last line confuses me, so you pay an interest on the loan if it sells for more than what you paid?

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you do pay interest on the loan after 5 years, but the loan is percentage based so will rise or fall with the equity of the house

 

fuck a new build

 

fuck a government loan

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Looks as if it's only worth it if you know for sure you can pay that loan off within the 5 years, it's always gonna be to benefit them but I guess it helps people get a foot in. 

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the loan frm the government  is interest free u can pay it bk like a normal loan without the taking the money from the sale of ur home

 

I would go for it...

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Looks as if it's only worth it if you know for sure you can pay that loan off within the 5 years, it's always gonna be to benefit them but I guess it helps people get a foot in. 

 

if ur on getting a new build n have a half decent bit of money behind you it'd help you secure a decent mortgage rate

 

i wonder if theres a cut off point for how much deposit u can have whilst still bein eligible

 

if this wasnt jus on new builds u could wack down 50k up on a bog standard property in manchester, have these cunts pay off 20% n ud be 80% of the way there

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It's being revamped, thought it's not restricted to new-builds now.

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I will definitely look into this. Bare estate agents have been sending me emails about it.

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parents selling the house, sending me 50k from the proceeds... so i will be effectively jumping on the new builds for my own place

 

average monthly mortgage repayments are between 1,400-1,600 can you imagine...

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No imagination required, I know the reality.

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average monthly mortgage repayments are between 1,400-1,600 can you imagine...

 

 

ffs

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im def gna have to get someone in wid me and pay half

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Pay it, in years to come your realise how important it was...

 

Why you think, other than keeping you in th rat race, the government want to help first time buyers?

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Eventually I'm gonna move yard, and try rent this out...

 

or get dodgy mortgage and rent that out.

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average monthly mortgage repayments are between 1,400-1,600 can you imagine...

 

 

ffs

The average monthly mortgage payment for someone with a 30 per cent deposit is £580, while the typical take-home wage is £2,062. 

 

http://www.thisismoney.co.uk/money/mortgageshome/article-2264974/Mortgage-payments-drop-affordable-level-decade-lenders-slash-rates.html

 

A Castle Trust report found that across the UK the average monthly mortgage payments make up 30% of a household's total outgoings.

 

Households in London spend an average of £716.80 on mortgage payments each month, the biggest sum in the country, compared to Northern Irish households which spend just £438.40 every month.

 

http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2244547/mortgage-payments-represent-a-third-of-all-household-spending

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Lol it's good to see the duo imhim n chaps back in action

Chaps u was lolling at payin taxes a few months back, u ain't gona get a mortgage in ur name like that

How's it all goin anyway

N yh yosh ur right, hadn't heard about this 2nd phase

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Chaps, flat/house share is a good option

Let out rooms

You can get guys paying your mortgage

Studeys are a good bet, In London there are 300000 full time students but only 45000 worth of uni accomodation do the math

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What are the negatives of this scheme

 

someone list them please, I dont much about property tbh

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average monthly mortgage repayments are between 1,400-1,600 can you imagine...

 

 

ffs

The average monthly mortgage payment for someone with a 30 per cent deposit is £580, while the typical take-home wage is £2,062. 

 

http://www.thisismoney.co.uk/money/mortgageshome/article-2264974/Mortgage-payments-drop-affordable-level-decade-lenders-slash-rates.html

 

A Castle Trust report found that across the UK the average monthly mortgage payments make up 30% of a household's total outgoings.

 

Households in London spend an average of £716.80 on mortgage payments each month, the biggest sum in the country, compared to Northern Irish households which spend just £438.40 every month.

 

http://www.mortgagesolutions.co.uk/mortgage-solutions/news/2244547/mortgage-payments-represent-a-third-of-all-household-spending

 

But then what's 30% of the average house price?

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