barrats-home buyer direct

laurad85

Hi, i was wondering if somebody can give us some advice. We have seen a property we would like and went in to enquire with the barratt homes salesman. He explained that as we are first time buyers and i am a key worker, that we qualify for the governments home buyer direct scheme. At the moment, me and my partner are just about to pay off £3000 worth of debt and start saving for a mortgage. We decided it was better to use our deposit money to get rid off our loan. So we spoke to the man, and rang up their mortgage advisor (sorry i cant remember the companies name). They said that we would qualify for an 80% 20% split. We would pay £107,000, the government would pay £28,000 (pay back after 10 years) and we would £7,000 deposit in the summer when the house was completed. We have no worries about getting the deposit as we will be debt free by this week (cheque going off tomorrow) and will live off one of our wages and save the others (prob looking at about £10,000 saved up by July) The morgage rate we would lend at is 5.98%%. We have been trying to do our research but really do not know if this whole thing is a good idea. The house and place we will live is lovely, and we dont have the deposit now to get a mortgage without the scheme.

Has anybody used the home buyer direct scheme before? Does anyone know if we are getting a good deal? Could we go directly to a bank to get this mortgage?

Sorry if this is confusing!
Thanks

poppysarah

Ask to buy a house that is already finished. Next summer prices/jobs/mortgages might all be different.

You should do a look for threads here about people being forced to complete on a house they can't afford anymore, can't get a mortgage for, or the house never being completed.

The fact the government (Thats you and me as taxpayers) is propping up house prices like this means house prices are too expensive.

See where you are next year before committing to buying a house. You might have a huge deposit saved by then enabling you to get a better rate of mortgage.

Duckie

The other thing to bear in mind is that the 20% you have to pay back is 20% of the value of the property in 10 years time (if that's when you're repaying it) so, you could be paying back shed loads more than you initially 'borrowed' for that 20%. If you can save up a deposit as quickly as you say you can, I think it will be worth the wait in the long run.