FirstBuy scheme questions

K2t

Thank you everyone.
Why only if we intend I live in this property for 10+ years would it work out? Surely, if we lived in this property for 5 years then either began paying off equity loan or sold this would make more sense? If we lived in it for 10+ years then interest would be going up each year after year 5?
Please don't think I'm being negative here, you probably know a lot more about this than little old me! I'm just trying to understand every inch

K2t

Oh also, I believe we have good credit score. Together we have savings of roughy £5,000, direct sebits to saving accounts, plus our £20,000 deposit. Neither of us have bad credit, the only 'loan' we have is a mattress which will be paid off in August and all payments have been made on time. We can probably easily get a mortgage but the temptation is there as comparing the new build to our other affordable properties, there's no comparison!

The_J

That's the problem, it's the selling in the future and why I suggest 10 years and budgeting for the equity loan accordingly.

If it's in a good area and it's good value then you might be able to make it work.

bodmil

Never mind the price, I wouldn't go near an agent that insisted I used their solicitors and mortgage advisor etc. I'm even wary of those that provide an incentive for doing so, even attempting those tactics puts me off dealing with them.

MagicCats

harvey115 wrote: »

prices on the new builds are always above the actual market prices, I think somewhere in the region of at least 15% because the appliances and all other things in the house are new.

With regards to Barratt, their house builds I think are one of the best ones out there. So the value would not be too much off. So in 5 years if you are planning to sell the house keep in mind that the economy is flourishing at the moment and it maybe that the house prices get to the same point in 5 years, you would end up in negative equity simply because the house will not be new any more.

Really? Last I looked we were in a double dip recession.....

harvey115

I missed a NOT in there:

the economy is NOT flourishing at the moment

MagicCats

harvey115 wrote: »

I missed a NOT in there:

the economy is NOT flourishing at the moment

I did wonder

K2t

Thank you to everyone for your comments, you'll be pleased to know we have scrapped this idea! Back to the estate agents...