We’d like to remind Forumites to please avoid political debate on the Forum.

This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.

PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide

Mortgage & Equity Linked Mortgage advice

Hi,

I'm hoping someone here might be able to help me a bit. We're both FTBs so this is all a bit new to us.

We're looking to buy a flat for £115k, we have £11.5k in deposit and the developers will loan us 15%, the rest will be mortgage.

The amount the developers lend us will be an Equity Linked mortgage of ten years or whenever we sell if sooner than 10 years.

1. What is the most sensible way of preparing to pay this money? ISA, endowment, plan to add to main mortgage?

Any advice is welcome.


Secondly, the mortgage offer we have expires in April, we won't complete until August (new build!) so are the mortgage lender likely to be able to give us a new deal if we ask and extend it to August? We've currently been offered a 3.79% 2 year fixed (but the 2 years started in Jan 2010) but this product will be gone at the end of April.

Thanks
No longer using this account for new posts from 2013

Comments

  • poppysarah
    poppysarah Posts: 11,522 Forumite
    Gemmzie wrote: »
    Hi, the developers will loan us 15%, the rest will be mortgage.


    What can you get for the same price (minus 15%) in the same area?

    New build = premium.
  • Gemmzie
    Gemmzie Posts: 14,876 Forumite
    We looked for about six months and we found nowhere that needed less than £20k's work (OH's parents used to develop property so thankfully know the costs realistically), a holiday home or much smaller / 1 bedroom only.
    No longer using this account for new posts from 2013
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 354.3K Banking & Borrowing
  • 254.4K Reduce Debt & Boost Income
  • 455.4K Spending & Discounts
  • 247.3K Work, Benefits & Business
  • 604K Mortgages, Homes & Bills
  • 178.4K Life & Family
  • 261.5K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.7K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.