Foxhateram Posted 1 June 2013 Posted 1 June 2013 Has anyone used the help to buy scheme for buying a home? You have a 75% mortgage and then have an equity loan on the rest. Me and my fiancée are starting to look at buying and I'm wondering if anyone had experience of the scheme or any good advice in general?
stix Posted 1 June 2013 Posted 1 June 2013 I read something earlier about Nationwide doing good deals on those government assisted mortgages. I can't remember the actual figures but it was less than 3% for the first 3 years with a 5% deposit.
MooseBreath Posted 1 June 2013 Posted 1 June 2013 Help to buy is only available for new builds. OK if you can accept being in negative equity the minute you move in, ie if it's your 'forever home' and the selling price therefore doesn't matter. If it's just a stepping stone then I wouldn't go for a new home.
sphericalfox Posted 1 June 2013 Posted 1 June 2013 These are for new builds, so if you don't mind living in a shoebox by a train track or a busy motorway in the middle of nowhere, then they are a bargain.
stix Posted 1 June 2013 Posted 1 June 2013 Moosey & Spherical speak the truth. I lived in a new build 3 storey 4 bed for a few years and considering there was only 2 of us in it......you couldn't swing a cat in it. No storage, paper thin walls etc...
separator Posted 1 June 2013 Posted 1 June 2013 There is also the mortgage guarantee scheme which starts in january 2014, where the government will underwrite approx 15% of a mortgage value. In theory this means a lender will accept smaller deposits (5-10%) and lend more, knowing that 15% of what its loaned is guaranteed by the government in the event of non payment. This is open to first time or existing buyers, new or old houses. http://www.bbc.co.uk/news/business-21849974
Guest Posted 1 June 2013 Posted 1 June 2013 There is also the mortgage guarantee scheme which starts in january 2014, where the government will underwrite approx 15% of a mortgage value. In theory this means a lender will accept smaller deposits (5-10%) and lend more, knowing that 15% of what its loaned is guaranteed by the government in the event of non payment. This is open to first time or existing buyers, new or old houses. http://www.bbc.co.uk/news/business-21849974 And could quite possibly bring around another collapse like the US primes.
separator Posted 1 June 2013 Posted 1 June 2013 And could quite possibly bring around another collapse like the US primes. Indeed, it was irresponsible mortgage lending that started this resession in the first place. When I took my mortgage out 8 years ago 125% mortgages were easy to get. Glad I stuck to a 95% one.
Kyle_Le_Don Posted 1 June 2013 Posted 1 June 2013 Ive been thinking I'd rather home be anywhere... RV style. xD
MooseBreath Posted 1 June 2013 Posted 1 June 2013 And could quite possibly bring around another collapse like the US primes. Can't see it. I'd imagine the government are going to be pretty careful about whose mortgages they get involved with. The lenders themselves will still be very careful as well. I doubt we'll see the return of gung-ho lending anytime soon. Something does need to be done though. The last five years have been awful for anyone wanting to get on the property ladder.
stix Posted 1 June 2013 Posted 1 June 2013 The last five years have been awful for anyone wanting to get on the property ladder. Ain't that the truth.
Vlad the Fox Posted 1 June 2013 Posted 1 June 2013 Indeed, it was irresponsible mortgage lending that started this resession in the first place. When I took my mortgage out 8 years ago 125% mortgages were easy to get. Glad I stuck to a 95% one. I lied horribly on my first mortgage application, had I not done I would never have got on the ladder as prices had just started rocketing, my house had gone up 20k by the time we moved in, they didn't carry out any serious checks, didn't even ask for payslips. I had a northern rock mortgage and took a loan out with them for the deposit and to consolidate other debt. I've never missed a payment may I add.
separator Posted 1 June 2013 Posted 1 June 2013 I lied horribly on my first mortgage application, had I not done I would never have got on the ladder as prices had just started rocketing, my house had gone up 20k by the time we moved in, they didn't carry out any serious checks, didn't even ask for payslips. I had a northern rock mortgage and took a loan out with them for the deposit and to consolidate other debt. I've never missed a payment may I add. They only wanted 3 months payslips off me, nothing else. Was offered all of the additional loans, borrow more than I need, interest only repayments etc. You can see why these banks went to the wall when the economy went down the kermit.
separator Posted 1 June 2013 Posted 1 June 2013 Just seen this advert on Facebook, will be zero help to the op but look who's coming to Leicester to talk about property investment http://rf-leicester.localspecific.com/ Edit ; Just read the small print * Robbie Fowler will not attend these events
Vlad the Fox Posted 1 June 2013 Posted 1 June 2013 They only wanted 3 months payslips off me, nothing else. Was offered all of the additional loans, borrow more than I need, interest only repayments etc. You can see why these banks went to the wall when the economy went down the kermit. It was as easy as getting a credit card. Until the banking crisis I had never proved my earnings, the made up figures I gave them were good enough.
Strokes Posted 2 June 2013 Posted 2 June 2013 Has anyone used the help to buy scheme for buying a home? You have a 75% mortgage and then have an equity loan on the rest. Me and my fiancée are starting to look at buying and I'm wondering if anyone had experience of the scheme or any good advice in general?Yes me and my missus did bought ours in december, everything went very well for us.The guy at lloyds was superb, which is more than can be said for the greedy bastard lawyers.
The Year Of The Fox Posted 2 June 2013 Posted 2 June 2013 My mate bought one where he has to pay back about 10% of the deposit within 10 years. A hell of a lot of money to save whilst learning how to cope with dealing with all the other usual outgoings being a home owner ensues. I do like new builds but they're put together so cheaply its unreal. Certainly glad I didn't get on one of the government schemes though
Strokes Posted 2 June 2013 Posted 2 June 2013 My mate bought one where he has to pay back about 10% of the deposit within 10 years. A hell of a lot of money to save whilst learning how to cope with dealing with all the other usual outgoings being a home owner ensues. I do like new builds but they're put together so cheaply its unreal. Certainly glad I didn't get on one of the government schemes though We are paying out less than we were when renting, for more.
Foxhateram Posted 2 June 2013 Author Posted 2 June 2013 Yes me and my missus did bought ours in december, everything went very well for us. The guy at lloyds was superb, which is more than can be said for the greedy bastard lawyers. How much did your lawyers cost?
Strokes Posted 4 June 2013 Posted 4 June 2013 How much did your lawyers cost?Nearly 2k, its not the price i object too, its the fact it was more than the fixed price quotation that was given.
Ric Flair Posted 4 June 2013 Posted 4 June 2013 Steer clear of new builds at all costs would be my advice. I bought one from Barratts back in 2005 when everything appeared tickety-boo. I paid £114,000 for a one bedroom flat on a 75% mortgage with the other 25% being retained by the building company. I have to purchase the remaining 25% of the properties 'current' value in 2015 or sell and the building company gets 25% of it's worth. I've paid no rent on the remaining 25%. The problem is, new builds were priced above their actual worth and then the market crashed and it's left me with a gaff that's probably worth 40%+ less than I paid. I'm sure there are a lot of other people in this boat, most certainly in the block I bought so i'm intrigued to know what the building company is going to do. I would love to just hand the flat back over and tell them to bollocks, but I don't suspect Halifax would be too pleased with that. The official market value of my property is still £90,000 yet the last sale of a flat in the block went for £65,000 at auction due to reposession, infact there hasn't been a flat sold normally since 2009. They are all reposessions and bought at knockdown value but surely it's true value is only what people are willing to pay? Therefore £65,000? Piece of shit. So steer clear. I am trying to buy in London at the minute, now that's a fookin pain in the 'arris.
Strokes Posted 4 June 2013 Posted 4 June 2013 Steer clear of new builds at all costs would be my advice. I bought one from Barratts back in 2005 when everything appeared tickety-boo. I paid £114,000 for a one bedroom flat on a 75% mortgage with the other 25% being retained by the building company. I have to purchase the remaining 25% of the properties 'current' value in 2015 or sell and the building company gets 25% of it's worth. I've paid no rent on the remaining 25%. The problem is, new builds were priced above their actual worth and then the market crashed and it's left me with a gaff that's probably worth 40%+ less than I paid. I'm sure there are a lot of other people in this boat, most certainly in the block I bought so i'm intrigued to know what the building company is going to do. I would love to just hand the flat back over and tell them to bollocks, but I don't suspect Halifax would be too pleased with that. The official market value of my property is still £90,000 yet the last sale of a flat in the block went for £65,000 at auction due to reposession, infact there hasn't been a flat sold normally since 2009. They are all reposessions and bought at knockdown value but surely it's true value is only what people are willing to pay? Therefore £65,000? Piece of shit. So steer clear. I am trying to buy in London at the minute, now that's a fookin pain in the 'arris. Yeah part ownership schemes really wern't thought through, the one im on is very different. Our only restriction is we cant sell for 3 years, just realised my scheme is different to original poster, its called the lend a hand scheme.My only advice is to research your solicitors first, wish i had.
leicsmac Posted 4 June 2013 Posted 4 June 2013 Are house prices finally coming down? About time. Might actually be able to get on the property ladder at some point this decade, then.
MPH Posted 4 June 2013 Posted 4 June 2013 If you want to get onto the property ladder easy you should all move to the states. Most states are running a government assisted program that helps out first time buyers. my cousin just moved to minnesota. Now he had to sit through a couple of saturday morning sessions about how to be a sensible home owner, ect Very boring , im sure but the end result was that he got given $10,000 towards the deposit of his home. But you have to be a first time home owner. They just started the same program here in North Carolina 3 months after i bought my house. But you really do get much more for your money over here. When we bought this place at the beginning of december We Paid $85,000 for it. Its a 4 bedroom detached home on 1.5 acres of land most of which is trees and wood trails.. it had a brand new roof put on last year. Think thats about 55,000 pounds. Our mortgage payment, which includes the tax and home insurance is $488 a month which works out at about 322 pounds a month.
MooseBreath Posted 4 June 2013 Posted 4 June 2013 Are house prices finally coming down? About time. Might actually be able to get on the property ladder at some point this decade, then. Going up again now according to the latest stats. Still overpriced imo. I'm not buying til I've found somewhere I want to live for at least ten years otherwise all the fees and extra costs mean you might as well just rent. Especially with no guarantee that the value of the house won't go down. Twenty years ago owning was a no-brainer. Now, not so much.
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