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  • FIRST POST
    • MRDOLLAR
    • By MRDOLLAR 13th Sep 17, 7:40 AM
    • 102Posts
    • 21Thanks
    MRDOLLAR
    Help to buy scheme help is it worth it ?
    • #1
    • 13th Sep 17, 7:40 AM
    Help to buy scheme help is it worth it ? 13th Sep 17 at 7:40 AM
    Hi there hoping you guys can offer me straight simple advice!
    We are considering moving away from the big city and closer to the countryside. We want to offer our new born son a different up bringing. Also we may if we are blessed again have another child in the future!
    We currently have a 3 bed house brought 3 years ago for £133,000 and valued last week at £190,000 a nice profit !
    We have an outstanding Mortgage of £128,000 with 30 years remaining. Our existing mortgage is 1.99% £433 a month with 2 years on this deal.
    The 4 bedroom house we have seen is a new build and on the help to buy scheme loan. The value of this house is £239,995 can anyone help me calculate what we would roughly need to purchase this house and payments?
    The builders also offer a Easy move scheme "the name suggests, our Easymove* service can make selling your home, easy. It not only saves you time, but we’ll pay your agent’s fees - so you can save a fortune too."
    Any ideas what is best all thoughts considered and I appreciate your advice!
    Thanks guys and gals
Page 1
    • Time2go
    • By Time2go 13th Sep 17, 7:52 AM
    • 107 Posts
    • 13 Thanks
    Time2go
    • #2
    • 13th Sep 17, 7:52 AM
    • #2
    • 13th Sep 17, 7:52 AM
    We are using a similar scheme to easymove with our builder in our experience all it means is they pay estate agent we have continually had to chase things up. Also insist you choose estate agents you use to get beat price and service. We also got them to pay stamp duty and half legal fees and told them what solicitor we wanted to use. Normally with something like easy move you don't actually reserve the plot till you get an offer on yours therefore make sure their are alternative plots you like as if someone comes in and wants the plot you want and they are ready to progress they will let them have it.

    Due to profit you have made is part exchange not an option.
    • Tiners
    • By Tiners 13th Sep 17, 8:01 AM
    • 190 Posts
    • 203 Thanks
    Tiners
    • #3
    • 13th Sep 17, 8:01 AM
    • #3
    • 13th Sep 17, 8:01 AM
    So house prices have risen 15% a year for the last 3 years in your area have they?

    I wouldn't get too excited about the 'nice profit' from this valuation just yet if I were you.
    • alex_163163
    • By alex_163163 13th Sep 17, 9:30 AM
    • 178 Posts
    • 106 Thanks
    alex_163163
    • #4
    • 13th Sep 17, 9:30 AM
    • #4
    • 13th Sep 17, 9:30 AM
    Tiners - why couldn't they have risen that much? I bought for £75k in 2014 and sold in 2016 for £115k as my type of property was in demand at that time. Maybe the OPs area is the same if the type of house he owns is in demand.

    Back to the original post - first question is do you have an early repayment charge on your current mortgage? If yes, can you afford this and still move?

    Boone can tell you what monthly payments will be as you haven't said how much deposit you are putting down, what % HTB loan you will be applying for and so what size mortgage you will need on the new house.
    Say if you do sell for £190k, you would have approx £62k equity in your home. How much of that do you want to put down as the new deposit? Even though you are using HTB you can put down more than 5%.
    So say you put down £50k deposit (keeping back £12k for fees, costs, etc) you would need £184k mortgage. Have you seen a Broker to see what mortgage you can afford? Do you even need to use HTB?
    If you do decide to use HTB, you do not need to take the full 20% loan - you can apply for less eg 10% or anywhere in between. From my experience I would say apply for the lowest amount of HTB loan you can.
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