FTB advice needed please

lookingtobuy

Hi,

I am looking for some advice.... my Husband and I have a 5% deposit and I am trying to work out what would be our best option financially but I am so confused... so any advice would be greatly received...

Here are the two options we have...

Nationwide Save to Buy deal (we've had this account for 6 mths so qualify)

There are nice 3 bed houses in our area around £250k so we wouldn't go over this hopefully stay well under! based on spending £250k our mortgage payment would be..

£1347 per month x 30 years (5.49%)

Help to Buy scheme

To get a 3 bed we would need to spend upwards of £300k, and so would have to scrape together the extra stamp duty which my parents have said they will loan us on a long term basis, so not in a hurry for it back. Based on spending this amount our mortgage would be...

approx £1150 per month x 25 years (I worked this out roughly on about 4% as not sure on the exact interest rate)

My predicament is this... with the help to buy scheme it makes it cheaper for us in the short term (when we want to have a family) but long term I guess it could be more expensive... also with a new build the cost for getting stuff done on moving in should be minimal too as it's all new and we have all of our furniture already.. but the extra 20% we don't own and the RPI interest after year 6 worry me.

With buying an older house I am thinking we have more scope to make money in the short term if we negotiate a good price but we will be paying more short term. I was thinking after 3 years we might have paid back another 5% so our payments might be less if we re-mortgage and get a better rate anyway.

So after my long waffle, I was wondering what might be our best avenue to go down... We need to move by the end of this year as house we are in being sold so don't have enough time to save a bigger deposit.

Thanks in advance.