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Firstbuy, I don't understand it
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Safe as much as you possibly can at the same time and then at least each month you know your a month closer to moving out!0
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Safe as much as you possibly can at the same time and then at least each month you know your a month closer to moving out!
1 income, expensive area, high rent... constantly using the overdraft and credit card to keep afloat but paying it off every month... give me six months of serious penny pinching, then give me the advice again lol.0 -
Well good luck! Hehe!0
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mildred1978 wrote: »It means that they will lend up to 20% as a deposit, and you don't pay any interest on that for the first 5 years. After the 5 years is up they will charge you 1.75% on the outstanding loan, and then increase that by RPI (a measure of inflation) plus 1% each year. So if inflation during year 6 and 7 were 5% your interest rate for year 7 would be 2.84% and for year 8 would be 3.98%. It gets more expensive every year basically.
You can never use a personal loan as a deposit. You'll be limited to certain mortgage providers and the rate is likely to be higher than ''normal mortgages, and you won't own any part of your home for 5 years or more (but you'll still be responsible for all of the maintenance).
I expect lenders will want to see evidence that you can save money as you'd presumably be looking for an 80% mortgage. They might actually demand you put in 5 or 10% yourself, depending on whether you get the full 20% via homebuy.
Surely if RPI is 5%, that would mean that your rate would be 6%.It's not easy having a good time. Even smiling makes my face ache.0 -
Surely if RPI is 5%, that would mean that your rate would be 6%.
This is the ambiguity I mentioned. I am pretty sure they are talking about escalating the absolute amount of the first payment by RPI +1%, not escalating the RATE to RPI+1%, but a quick call or look at the documentation would confirm that.0 -
1 income, expensive area, high rent... constantly using the overdraft and credit card to keep afloat but paying it off every month... give me six months of serious penny pinching, then give me the advice again lol.
Am in the same boat as you, saving and renting at the same time is just not possible when you have to shellout almost £1 monthly on rent, leaves you with nothing much to save basically, was looking at these SO and SE schemes but the wiser part of me keep telling me it is not the better option at the same time am !!!!ed off payint some else's mortgage for them @ £850 monthly in rents... leaves one between the devil and the deep blue sea...
I envy people with parents to prop them up or pay a deposit for them...0 -
Am in the same boat as you [...]
I envy people with parents to prop them up or pay a deposit for them...
me too. I catch myself dreaming about when the father in law will pop his clogs, and then feeling terrible about that because although he's old and we don't get on too well, I don't actually want him to die!! but his death would be the only way of us getting cash to be honest. it's such a nightmare.
£700 rent, £100 CT and £140 loan payment each month here, plus other bills.0 -
i thought you had to have 5% of the value yourself with firstbuy schemes :S we were looking at new builds and decided against it, tooooo small. wish we had now haha we bought a money pit. good luck0
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Erm not everyone has help from parents!! I was renting and have just done it! Took a while and missed out on lots of things but it was worth it and I was determined!
Any idea what exactly you "just did" took a full mortgage or got one of these schemes?
By you, I guess you are single? which part of the country do you live in (I live in london) moving out is not an option for me as my Job is here plus OH currently does not work due to childcare, so its all coming from one single purse...Almost £1k on rents/CT exluding other bills...
pardon all the questions, I just get excited when I see people who just "did it" and wonder what their secret is....:D0
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