First time buyers / Help to Buy


tunstallhill

Striker
anyone got any recent experience of young adults buying their first property?

trying to scrape through with a relatively cheap first house and a minimum deposit.

i was just reading about the help to buy scheme where they can lend an extra 20% of the house price for 5 years interest free, but it says it ends at the end of March.

anyone got any advice?
 
With HTB, you put 5% down, and you get 20% off the government through a company called ‘Target’. Your mortgage will be 75%.

The first 5 years are interest free on the HTB loan, after this you are charged a set monthly interest fee on the size of your HTB. Most people tie the HTB into their mortgage at the 5 year point.

If you can afford to overpay, do it. Or, if you can afford to stick the monthly difference away between a 95% mortgage and a 75% mortgage, do that as well. You’ll have the cash sitting there to pay Target off without needing to tie it in when it comes to remortgage.

Bear in mind this - the HTB payback is 20% value of the house at all times. If the house is £200k, your HTB will be £40k. If in 5 years your house has increased in value, you pay back 20% of the new valuation (will be more than the original loan amount)

If the market crashes though, and your house is valued lower, your HTB repayment will also be lower. It is always 20% of the valuation no matter what.
 
I’d have thought you’d have to have completed by end of March so it’s very unlikely you’ll be able to use it by now.
 
With HTB, you put 5% down, and you get 20% off the government through a company called ‘Target’. Your mortgage will be 75%.

The first 5 years are interest free on the HTB loan, after this you are charged a set monthly interest fee on the size of your HTB. Most people tie the HTB into their mortgage at the 5 year point.

If you can afford to overpay, do it. Or, if you can afford to stick the monthly difference away between a 95% mortgage and a 75% mortgage, do that as well. You’ll have the cash sitting there to pay Target off without needing to tie it in when it comes to remortgage.

Bear in mind this - the HTB payback is 20% value of the house at all times. If the house is £200k, your HTB will be £40k. If in 5 years your house has increased in value, you pay back 20% of the new valuation (will be more than the original loan amount)

If the market crashes though, and your house is valued lower, your HTB repayment will also be lower. It is always 20% of the valuation no matter what.
This is the correct answer
 
With HTB, you put 5% down, and you get 20% off the government through a company called ‘Target’. Your mortgage will be 75%.

The first 5 years are interest free on the HTB loan, after this you are charged a set monthly interest fee on the size of your HTB. Most people tie the HTB into their mortgage at the 5 year point.

If you can afford to overpay, do it. Or, if you can afford to stick the monthly difference away between a 95% mortgage and a 75% mortgage, do that as well. You’ll have the cash sitting there to pay Target off without needing to tie it in when it comes to remortgage.

Bear in mind this - the HTB payback is 20% value of the house at all times. If the house is £200k, your HTB will be £40k. If in 5 years your house has increased in value, you pay back 20% of the new valuation (will be more than the original loan amount)

If the market crashes though, and your house is valued lower, your HTB repayment will also be lower. It is always 20% of the valuation no matter what.
Spot on..makes sense

Looks like it's too late for this scheme , does anyone know if there's anything else similar knocking about?

Had a look at a few deals and with 10% deposit it's looking like over 6%apr. Is that about normal nowadays ?
 
Spot on..makes sense

Looks like it's too late for this scheme , does anyone know if there's anything else similar knocking about?

Had a look at a few deals and with 10% deposit it's looking like over 6%apr. Is that about normal nowadays ?
Speak to Simon, he deals with mortgages, he's not an expert but someone in his firm is
 
anyone got any recent experience of young adults buying their first property?

trying to scrape through with a relatively cheap first house and a minimum deposit.

i was just reading about the help to buy scheme where they can lend an extra 20% of the house price for 5 years interest free, but it says it ends at the end of March.

anyone got any advice?
I always had you down as in your 40s 😃
 
Spot on..makes sense

Looks like it's too late for this scheme , does anyone know if there's anything else similar knocking about?

Had a look at a few deals and with 10% deposit it's looking like over 6%apr. Is that about normal nowadays ?

It's the Budget on 1 Feb so possible that new schemes could be introduced or current rules changed.
 
anyone got any recent experience of young adults buying their first property?

trying to scrape through with a relatively cheap first house and a minimum deposit.

i was just reading about the help to buy scheme where they can lend an extra 20% of the house price for 5 years interest free, but it says it ends at the end of March.

anyone got any advice?
That scheme is closed.
 
Karbon homes do Rent to Buy.
You rent the gaff for 5 years, then the amount of rent you paid comes off the original house price and you mortgage the difference.
Mate has it, it was the only way of them getting somewhere.

 
Don’t do it. Save up and buy your house outright.
Aye just stop eating and stuff it easy, kids these days
With HTB, you put 5% down, and you get 20% off the government through a company called ‘Target’. Your mortgage will be 75%.

The first 5 years are interest free on the HTB loan, after this you are charged a set monthly interest fee on the size of your HTB. Most people tie the HTB into their mortgage at the 5 year point.

If you can afford to overpay, do it. Or, if you can afford to stick the monthly difference away between a 95% mortgage and a 75% mortgage, do that as well. You’ll have the cash sitting there to pay Target off without needing to tie it in when it comes to remortgage.

Bear in mind this - the HTB payback is 20% value of the house at all times. If the house is £200k, your HTB will be £40k. If in 5 years your house has increased in value, you pay back 20% of the new valuation (will be more than the original loan amount)

If the market crashes though, and your house is valued lower, your HTB repayment will also be lower. It is always 20% of the valuation no matter what.
I dont think that's the case mate, my cousin done and said if it went up he'd owe more but if it went down he'd still owe the 20% borrowed
If you can wait 12 months to start buying put 4k into a lifetime isa then the same in April and the government will add £2k. This must then be used to buy a first property or towards retirement
And prices will be down, probably not new builds like, but something will replace the HTB scheme
 
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