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Helping Hand for FTBs

http://firstrung.co.uk/articles.asp?pageid=NEWS&articlekey=2319

Start saving for that 10% deposit.

Int Rates on this mortgage pretty high, but is this the start of something?

Comments

  • nelly_2
    nelly_2 Posts: 17,863 Forumite
    10,000 Posts Combo Breaker
    Thats great their helping even more people [STRIKE]waste[/STRIKE] sorry spend 40% of their money on a house (the apparent average these days)
  • BobProperty
    BobProperty Posts: 3,245 Forumite
    1,000 Posts Combo Breaker
    Have you seen the rates :eek:

    You can borrow 5.5+1 at 6% then 2.99 over libor. So £100,000 will cost £500 a month IO, going up to (4.5 + 2.99) £624.17. So stick .5 on interest rates and you will be paying (5 + 2.99) £665.83 per month.

    But you "only" need to earn £100,000 / 5.5 (ignoring the 1) £18181.82 a year, which is a takehome of approx £1175. I leave others to work out how to live on £509 a month and save £100,000 to pay the capital off in 25 years.

    Doing the same calc but for repayment you get (4.5 + 2.99) £738.34. Stick .5 on interest rates and you get £771.15. So you only need to get by on £400 a month and you're OK.
    A house isn't a home without a cat.
    Those are my principles. If you don't like them, I have others.
    I have writer's block - I can't begin to tell you about it.
    You told me again you preferred handsome men but for me you would make an exception.
    It's a recession when your neighbour loses his job; it's a depression when you lose yours.
  • lynzpower
    lynzpower Posts: 25,311 Forumite
    10,000 Posts Combo Breaker
    But HEY! Still cheaper than shared ownership :rotfl:
    :beer: Well aint funny how its the little things in life that mean the most? Not where you live, the car you drive or the price tag on your clothes.
    Theres no dollar sign on piece of mind
    This Ive come to know...
    So if you agree have a drink with me, raise your glasses for a toast :beer:
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