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Advice on taking on extra mortgage in 75/25 scheme
Raggydoll1980
Posts: 1 Newbie
Ok, so a bit of background:
In September my husband and I will have been in our home for 4 years. We bought a new build Bovis home on homebuy scheme of 75/25. The deal was the extra 25% had to be taken on within 10 years at 25% of the original purchase price or if the market had increased 25% of that current value.
Price was £160,000 of which we got a mortage for £120,000. we still have £40,000 to take on as a minimum or if the market had increased whatever 25% would be.
My question is as the market has decreased - houses in the area are selling at approx £130,000. Is it worth taking on the extra mortgage to take advantage of low interest rates and greater period to pay back the mortgage over. Or whilst the property is in negative equity would it be foolish to consider?
I would appreciate any advice you can give on this.
In September my husband and I will have been in our home for 4 years. We bought a new build Bovis home on homebuy scheme of 75/25. The deal was the extra 25% had to be taken on within 10 years at 25% of the original purchase price or if the market had increased 25% of that current value.
Price was £160,000 of which we got a mortage for £120,000. we still have £40,000 to take on as a minimum or if the market had increased whatever 25% would be.
My question is as the market has decreased - houses in the area are selling at approx £130,000. Is it worth taking on the extra mortgage to take advantage of low interest rates and greater period to pay back the mortgage over. Or whilst the property is in negative equity would it be foolish to consider?
I would appreciate any advice you can give on this.
0
Comments
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What happens if you don't pay off the 40k in 6 years?It's not easy having a good time. Even smiling makes my face ache.0
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