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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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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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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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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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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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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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