Purchasing new build house - equity share

GeorgieB123

Thats what we are hoping to do. We are currently renting which is expensive around here (700pcm for a two bed house) whereas a mortgage works out at £475 so we are hoping to either save the extraa £225 to pay off the equity loan or overpay the mortgage. Is it working well for you??

Rosey78

pioneer22 wrote: »

That's really good to hear! How are the prices holding up?

Prices have pretty much stayed the same since we purchased, we live just outside London in Essex. I actually wouldn't mind a drop in house prices over the next few years, as long as it enables me to get a bigger property when we are looking to move.

Rosey78

GeorgieB123 wrote: »

Thats what we are hoping to do. We are currently renting which is expensive around here (700pcm for a two bed house) whereas a mortgage works out at £475 so we are hoping to either save the extraa £225 to pay off the equity loan or overpay the mortgage. Is it working well for you??

Hi GeorgieB123, yes it is working great for us so far, our mortgage is £870 per month, the apartment below us is currently renting for £1200 per month. This scheme can work, as long as you go into it fully understanding how it works. I knew that my career would progress and with that my ability to ensure that I would be able to payoff the interest free loan within the 5 year period. This scheme works for us, we own the property and have an interest free loan, that enabled us to get a good 75% LTV mortgage rate. You also need to be sure on the property i.e buy in a desirable area to limit the potential decrease in property price.

GeorgieB123

Rosey78 wrote: »

Hi GeorgieB123, yes it is working great for us so far, our mortgage is £870 per month, the apartment below us is currently renting for £1200 per month. This scheme can work, as long as you go into it fully understanding how it works. I knew that my career would progress and with that my ability to ensure that I would be able to payoff the interest free loan within the 5 year period. This scheme works for us, we own the property and have an interest free loan, that enabled us to get a good 75% LTV mortgage rate. You also need to be sure on the property i.e buy in a desirable area to limit the potential decrease in property price.

I only work part-time as I'm studying to become a teacher so withing the next five years are finances should get much stronger. We really checked the scheme and it seems to work for us so fingers crossed we get accepted for the mortgage!
The new build estate is absolutely huge....700 houses huge..and as they have only just started building we have pick of the estate and a pretty decent pick of plots so we are hoping to go for one with a good sized garden, up on the hill for the good views and a double garge which for a two bed house is a bonus in order to help us when we sell.