Opinions on this...

poppysarah

You should also discuss with your OH whether you should be saving up some cash etc too.

silvercar

The issue of the 25% loan aside, please answer why you are prepared to pay 265k for something worth 250k at best.

kennyboy66_2

jamief wrote: »

A Company called Miller Homes is currently running a deal called MiWay

For example, one of the houses we like is £265,000. Under this scheme, we would pay 75% (198750), with the balance (in % of the sale price) taking the form of an interest free loan, payable after 10 years.

To me, this sounds ideal for me and my fianc!e. We have a deposit of around £15k-£20k depending on how much our own house sells for, so we would in essence need a mortgage of £178750 - £183750, based on our combined salary of £57000.

Like any free finance deal, this "offer" is built into the price.

To "give" you an interest free loan of £66250 over 10 years costs Miller homes something. I would guess they can borrow at between 6 and 7.5%, so this offer costs them about £34k or so.

You would probably be much better off trying to negotiate to get a reduction of at least this amount or more and taking full ownsership yourself.
In addition to the £34k plus reduction, you would save another £6k in stamp duty.

If you can't afford to buy this property without such schemes for around the £230k mark then you should give it a swerve. Equally if you think you will only live there for a short time (less than 5 years), it seems a bit pointless moving.

jamief

Why is it pointless moving from a small 2 bedroom semi detached, to a large 4 bedroom detached in a nicer area?

silvercar

jamie, you are avoiding addressing the price issues. I think you are choosing not to see them because you have fallen in love with the house.

Even if it is the house of your dreams, it is overpriced. If it was a second hand house on the market at 265k, you would offer 250k or less. Any reasonable seller would accept this.

MyWay finance the deal by overpricing the house.

kennyboy66_2

jamief wrote: »

Why is it pointless moving from a small 2 bedroom semi detached, to a large 4 bedroom detached in a nicer area? The mind !!!!ing boggles.

The clue was in this part of the response "Equally if you think you will only live there for a short time (less than 5 years), it seems a bit pointless moving".

Considering you are about to pay at least £12k in fees and stamp duty that you will never recover, and that you would pay another £5-6k in fees when you sell, then perhaps you might think that buying a property for a short amount of time may not be the wisest move.

Being unconcernced about paying at least £20k over the odds - the mind does indeed boggle.
Are you sure you didnt mean to type moneysquanderingexpert.com instead ?

jamief

Thanks for the typically sanctimonious reply.

Also you seem to have failed to see the bit that states I don't pay legal fees, and get massively discounted estate agency fees. Stamp Duty is covered by Miller Homes.

Austin_Allegro

jamief wrote: »

A Company called Miller Homes is currently running a deal called MiWay

For example, one of the houses we like is £265,000. Under this scheme, we would pay 75% (198750), with the balance (in % of the sale price) taking the form of an interest free loan, payable after 10 years.

To me, this sounds ideal for me and my fianc!e. We have a deposit of around £15k-£20k depending on how much our own house sells for, so we would in essence need a mortgage of £178750 - £183750, based on our combined salary of £57000.

To me, it sounds ideal for Miller Homes to maintain an overinflated selling price while offering a pretend discount.

jamief

silvercar wrote: »

jamie, you are avoiding addressing the price issues. I think you are choosing not to see them because you have fallen in love with the house.

Even if it is the house of your dreams, it is overpriced. If it was a second hand house on the market at 265k, you would offer 250k or less. Any reasonable seller would accept this.

MyWay finance the deal by overpricing the house.

You do realise I'm in SCOTLAND? The housing market here works on the OFFERS OVER basis, not the same as in England where you offer less.

In Scotland, if it was a second hand house on the market at £265,000, you would offer that OR MORE.

Catblue

Jamie, just ask yourself why the developers are offering loans to people to buy their houses.

If the houses are such a good deal, then the developers should easily be able to sell them in the traditional manner, right?