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Key home buyer advice

HeMan_3
Posts: 93 Forumite
I hope you guys can give me some advice.
I have a £30,000.00 deposit and am looking to purchase at Xmas time.
With this amount I am looking at a mortgage of £130.00.
I do not plan to sell the house for at least 7-10 years.
I have now just been offered the key home buyer scheme, with which I will get £50.000 interest free. However the catch is that this 50K will represent a % of the property which I will have to pay back when I sell it and leave my current job (I can transfer it to the new house as long as I stay in my job)
Any how what this means is just say I purchased a house worth 100K and used this 50K. Then the 50K would be 50% of the property so when I sell it they would get 50%.
If I take this 50k I will be looking at a property worth about 200K.
Not sure if I should take it however at 200K I could get a bigger house with a mortgage repayment of only £800-£900 a month.
In essence I could hold on to this 50K for 30 years and then give them back there % of the property.
Any advice welcome.
Thanks.
I have a £30,000.00 deposit and am looking to purchase at Xmas time.
With this amount I am looking at a mortgage of £130.00.
I do not plan to sell the house for at least 7-10 years.
I have now just been offered the key home buyer scheme, with which I will get £50.000 interest free. However the catch is that this 50K will represent a % of the property which I will have to pay back when I sell it and leave my current job (I can transfer it to the new house as long as I stay in my job)
Any how what this means is just say I purchased a house worth 100K and used this 50K. Then the 50K would be 50% of the property so when I sell it they would get 50%.
If I take this 50k I will be looking at a property worth about 200K.
Not sure if I should take it however at 200K I could get a bigger house with a mortgage repayment of only £800-£900 a month.
In essence I could hold on to this 50K for 30 years and then give them back there % of the property.
Any advice welcome.
Thanks.
0
Comments
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If it's something for free then take it!
Can you pay back some of this intrest free loan without selling if you find you have more money/income than expected?0 -
not sure, I plan to rent two rooms out to my mates for £250-300 each so thats £600 Approx. that I will be overpaying any how.0
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I'm not sure, but I would have thought if you get the key buyers loan that means your mortgage is on a lower LTV basis, so you should get a good rate and have more of a choice of mortgages, but perhaps a Mortgage advisor knows different.0
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I have not spoke to morgate advisor for 6 months but last time i spoke to them they said that on 140K I would be paying back around £1100.00 a month.0
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I just ran a quick check and I reacon this is way over the top!
On a standard 25 year repayment mortgage at say Nationwide 2 Year Fixed rates you would be paying back about £840 per month. I dare say there are better deals than that about too.0 -
Yes you are right however I earn 30,000 a year and most banks wil multiply by 3.5 giving me a total of 105 000 and i need more so I took my self down to a broker who offered me higher rates.
However things have changed in the last 6 months so i will have top re-vist the banks to get a new quote with the 50K in mind.0
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