FirstBuy Scheme & Moving Out In General

99thomasar

Hi all,

I am banging my head against the wall trying to get decent information online! Me (25) and my partner (27) have been looking to move out together (from our parent's homes) and have recently started looking in to new builds. Obviously, paying rent (some rich person's mortgage) is not an attractive prospect, especially in the area where we live where even a room will cost around £750pm before bills! So we're looking at moving outside of the M25, specifically to Aylesbury. Rents and house prices are so much cheaper than London when you compare like-for-like homes. The new builds are obviously £10k-£15k more expensive than equivalent sized, older homes - but still MUCH cheaper than where we currently live and offer the convenience of not having to undergo major DIY for the foreseeable future. We are looking at the Mayberry Place development by Taylor Wimpey and they are offering the FirstBuy scheme, which takes a 5% deposit from us, a 10% loan from the government and 10% from the developer, making in essence a 25% deposit and hence a 75%LTV mortgage. We have enough for the 5% deposit, enough to cover stamp duty and legal fees and have been provisionally accepted on to the FirstBuy scheme. The next phase of properties are going up for sale in 2-3 months and will be ready in January and we are seriously keen to go for one of the homes and a 'top-spec' design. As we intend to live here for the long-term we want it to be ready to go from day one, as we don't want to pay for DIY projects and builders later down the line.

We just don't know whether it will be truly worth our while signing up under this scheme. I've read plenty of good and bad comments on Taylor Wimpey and aren't interested in hearing any more about them, I just want to know practical information about the FirstBuy scheme, like how long does it take to get approved and how are people coping with their interest repayments?

We have budgeted for the costs of moving in, as well as accounted for fairly high repayments of around £1000pm, which we can manage, but aren't sure if the other costs of owning a home would be too much combined for our budget to handle. We take home about £2600pm after tax. Our combined outgoings for things like mobile phones and a car loan amount to £320 plus the estimated mortgage payments of £1000pm (worst case scenario) and we know council tax is about £142pm. That leaves us with around £1138pm for everything else and we need to know what bills average in the area for two people. Here's what we estimate:

Gas / Electric Dual Bill - £117pm
Water (meter, high usage) - £35pm
Food / Supplies - £250pm
Home Insurance - £20pm
Internet / Phone (high speed) - £65pm

This would leave us with roughly £650pm to play with - but am I being realistic with these figures, given that the home will be new and so very energy efficient etc? Have I missed anything else that's glaringly obvious? Any insights in to what couples are paying in newer homes is much appreciated.

Also, is somebody able to explain to me a bit more simply how the interest repayments would work after 5-years because I don't get how interest is worked out. The 20% loan would be around £50,000 tops, so what sort of repayments are we facing when they kick in?

And breathe.

99thomasar

Also, I know the price of the property is fairly high for our level of income, but my partner is looking for a new job that pays better (as her boss has been undervaluing her for 10-years and she can earn more with her experience level) and I am on a set pay-rise scale with my job, which means my pay increases year-on-year for the next 3 years by set amounts totalling £6000 and then once my training programme is over I will be earning very good money indeed, so I think in the long term we can afford this home. Just need to get the balance right now so we aren't skint for the next 3-4 years!

wymondham

Hopefully someone will be around shortly to help, but one thing I noticed is you make quite big assumptions with your increasing pay? I would have thought any more than 3 months prediction is pushing it? are these future rises absolutely guarenteed?

kingstreet

There's really nothing here you want/need to know about mortgages. The post may get better replies on the HBR&S board from those who have purchased newbuilds on a shared equity basis.

The payments on the equity loan will be based on the rates set out in the loan agreement.

99thomasar

Yes they are - I am very lucky to have got such a good job whereby as long as I stay on the training programme these increases are in my contract. The earnings after qualification will be in line with the industry standard, which is £40k+. Hope somebody can help me out soon!

wymondham

99thomasar wrote: »

Yes they are - I am very lucky to have got such a good job whereby as long as I stay on the training programme these increases are in my contract. The earnings after qualification will be in line with the industry standard, which is £40k+. Hope somebody can help me out soon!

excellent, hopefully the job is secure and remains so.