Home buy Direct paying back the loan ?

iwearahalo

Any tips ? With the distinct possibility of a 2nd crash this puts us in a better position to pay back the 25% value of the house that we owe as we pay back market value , we can only pay in 10% blocks so I think it works out at 10% 10% and then the remainig 5% and can not start paying back until a year has past from moving in .

Can we remortage , is this a good idea ? Pay cash , loan ?

Any ideas would be a great welcome .

Many Thanks .

Cannon_Fodder

In as big a chunk as they allow, so you don't pay fees 4 times to buy a single house...

iwearahalo

So in theory could I remortgage and pay the 25% off that way (£42,000) ? Am I allowed to ?

Cannon_Fodder

http://www.direct.gov.uk/en/HomeAndCommunity/BuyingAndSellingYourHome/HomeBuyingSchemes/DG_188028

"Once you’ve owned your home for 12 months, you can pay back part or all of the equity loan."
"You must pay back at least 10 per cent of the value of your home."


I think 10% is a minimum, not a maximum, but there are many flavours of scheme, so check your small print.

iwearahalo

But can I remortgage and pay it back that way ?

Cannon_Fodder

A remortgage might work, but be aware that although falling prices help reduce the size of the 25%...they also shrink the size of your equity in the other 75%...so it depends on the original deposit size and what deposit you could boost equity with upon remortgage.

You only bought in the summer, so its 9-ish months away. Start/keep saving. Then review.

Prices falling sounds good, but if they fall too fast, your mortgage Lender might change its stance on SO.

iwearahalo

Its actually strange in the fact that we want prices to fall now as opposed to go up !

brit1234

iwearahalo wrote: »

Its actually strange in the fact that we want prices to fall now as opposed to go up !

To most the falling house prices are good. Roll on the resumption of the house price crash.

Homes are to live in and not a speculative investment.