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Shared equity scheme advice
NATHANC
Posts: 20 Forumite
Hi all, new to this website just looking for some advice and different viewpoints. Me and my girlfriend have been saving for a house for 12 months and raised 6k for a deposit while renting our flat. We have been to view a new build barratt home on the Headstart scheme.
It seems a good scheme where barratt loan you an interest free loan for 15% house at resale point, which seems better to me than the 25% schemes. We would add a 5% deposit also making the mortgage payments the same as we pay for rent currently. Just after some advice regarding the looming payment of 15% the sale price if we decide to stay past the 10 year point obviously if we decide to sell up we just repay the 15 % and we take hopefully 85% of the equity.
House details are 3 bed semi 135K list price negotiated down to 128K carpeted to make a mortgage of 103k needed to be raised.
We just don’t know whether to jump on now as prices seem to be leveling a little, we do understand we would have to be there at least 5yrs before we hope to see equity.
Please help us
It seems a good scheme where barratt loan you an interest free loan for 15% house at resale point, which seems better to me than the 25% schemes. We would add a 5% deposit also making the mortgage payments the same as we pay for rent currently. Just after some advice regarding the looming payment of 15% the sale price if we decide to stay past the 10 year point obviously if we decide to sell up we just repay the 15 % and we take hopefully 85% of the equity.
House details are 3 bed semi 135K list price negotiated down to 128K carpeted to make a mortgage of 103k needed to be raised.
We just don’t know whether to jump on now as prices seem to be leveling a little, we do understand we would have to be there at least 5yrs before we hope to see equity.
Please help us
0
Comments
-
Shared equity is a scam.
Prices are not levelling off, they are falling at a rate of 20% per annum.
The "negotiated down" price of £128k is vastly overinflated (only 5% off the list price.)
Getting what is essentially a 95% mortgage (80% from the bank, 15% secured loan from Barratt) will leave you in negative equity before you even start.
There is no rush. Keep saving, and watch while houses become cheaper and return to a sane level.poppy100
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