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Help to Buy mortgage scheme
Comments
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We are thinking of making the most of this scheme when it launches in Jan 2014 but must admit to being a little nervous that houses prices will rise quite quickly so want to get on board early.
Does anyone know when more details will be released?0 -
I am also looking to buy Q1 next year and waiting for further details of this scheme.0
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Hi, I'm thinking about taking advantage of the help to buy scheme but I have a question. Lets say I have paid off 25% of my repayment mortgage in year 6 and I have enough equity to remortgage, can I pay off the 20% government loan with the proceeds?
Thanks
Yes...in a word.
If you build enough equity, you can remortgage at any point... You'd have to get valuations on your property to work out how much you owe on the loan, though...
For example, if you bought for 100k using a 20% loan...if you repaid 25% of the mortgage (80k), you'd have cleared 20k...you could then remortgage back to 80%LTV on a "normal" mortgage and repay the loan...Then just have the £80k mortgage outstanding on a property worth £100k.
It's nice and easy to work out as long as prices don't shift in either direction0 -
3 yrs ago when i was looking to join the housing ladder there was a scheme like this through barratt homes where they would lend 15% of the property value interest free for ten yrs, u then paid 15% of what ever the property was worth in either 10yrs or when u sold (whichever was the sooner).
Cracking idea, jumped at the chance. After 2 yrs, i started getting letters and calls almost every week from them offering me a chance to repay early and if i did they would take 3% off what i owed. As this was a several thousand pound saving i thought brilliant, and as i'd just come into some money i could just about afford to do this.
I contacted barratts did everything they asked me to do and sent a chq. I called to see if this was received, apparently no, we haven't got it but the paperwork you sent is incorrect. There customer service operative had provided me with the incorrect information previously (which they denied until i made them listen to the call back!) and conveniently after this they had also found the chq that i apparently didn't said (actually told me i was lying when i said i'd sent a chq, the chq i didn't send that they had already cashed i may add!)
By this point barratt homes had already left a bad taste in my mouth!! Then 4 weeks later, having not heard a dicky bird from them i call up and they advise me, "yeah yeah your second charge loan (as they call it) has been closed, we have contact land registry etc". I asked for this in writing to which they responded " that's not part of our policy but they would send." Weeks past and nothing, so i called again and got same response, waited a few more weeks and nothing.
now a mth or so later i come to pay some of the mtg off so i can switch to a lower rate and find i can't as i still have a second charge loan showing on my mtg!!! So if i change mtg or want to move according to my file i owe barratts which i don't. I hold no hope for confirmation from barratts to the contrary. Any ideas where to go now???
DO NOT BUY WITH BARRATT HOMES!!!!!!!!
THE PROPERTIES ARE FINE IT'S THE FINANCE SERVICE THAT HAS APPALLING CUSTOMER SERVICE AND ADMIN!0 -
This does sound awful and like you've really been messed about. In the case of Help to Buy though the equity loan comes from the government not from Barratt so I don't think what happened to you could happen with this scheme.
Good luck in getting it sorted out though.0 -
We are hoping to move on and have put our home up for sale and have registered an interest in a property which is 20K more than the one we currently own outright.
We have no idea when we might sell our property so to secure the dream property we are considering getting a mortgage on it.
We are actively trying to sell our existing home but would hope to use the Mortgage guarantee scheme to secure a 95% mortgage on the 'new' property until such time as our home sold.
The new scheme would enable us to find a 5% deposit from our savings without having to consider an equity release scheme in order to realise a 25% deposit.
Hope this makes sense. Thanks for any advice.0 -
You can't use NewBuy to purchase a second property and I suspect you'll be unable to use HTB-MG for that purpose either.
Ask the developer, if it's a newbuild.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I currently live in a small 2 bed house with my two sisters, it is my father's sole property but he lives abroad and has put all 4 of our names on the property for inheritance purposes (although he is only 50 and in good health) If I apply for a help to buy equity loan in order to purchase a place of my own (I currently share a single room with an adult sister) would I need to take my name off this shared property?0
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Can you use the governments 20% as an interest free loan for 5yrs and then pay it off or is the house revalued at that point to work out how much you owe them due to any increase in the house value?
Looking at a house of £300k (new build) with a deposit of £240k so could the additional amount be funded using the help to buy scheme and paid off with zero interest over the first five years?
thx0 -
I currently live in a small 2 bed house with my two sisters, it is my father's sole property but he lives abroad and has put all 4 of our names on the property for inheritance purposes (although he is only 50 and in good health) If I apply for a help to buy equity loan in order to purchase a place of my own (I currently share a single room with an adult sister) would I need to take my name off this shared property?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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