Help To Buy Scheme

slinkydonkey

Hello

I am moving house soon and im thinking about using the Help To Buy Scheme. Ive seen a few new flats and I did go and see one of there developers so called independent whole of the market mortgage advisers, he was more likes a sales man really very annoying.

Am I right in thinking I shouldent trust these advsors which are recommended by the actual developers?


I currently have a mortgage which is 0.5 above the base rate variable mortgage tracker for the life of the mortgage.

I do have a fairly large deposit one of my thoughts was to use Help to buy sheme to buy a slightly larger house and invest my deposit else where.

How can I find a decent advisor who knows about the help to buy scheme?

dimbo61

New Flat overpriced!
Developers " Independant" whole of market broker ?????
95% Mortgage means you could be in Negative equity for Many Many Years to come
You have a great tracker at 0.5% above base so 1% at the moment which your lender would be only too happy to take off you!!!
You have a good deposit BUT where are you going to invest it?

Do you live in a flat now ( London? )
Why are you looking at flats ? Is that all you can afford?
Like having people living above/below and either side of you ?
Paying management charges ?
If possible you should look at using your existing mortgage balance and savings to buy a house for that amount of money

leveller2911

slinkydonkey wrote: »

I currently have a mortgage which is 0.5 above the base rate variable
mortgage tracker for the life of the mortgage.





I do have a fairly large deposit one of my thoughts was to use Help
to buy sheme to buy a slightly larger house and invest my deposit else
where.

This is not what the scheme is for.

The scheme is to help people buy a house they would otherwise would not be in a position to buy. I don't agree with the scheme full stop but seeing posts like this shows how the scheme will be abused.

Typical, law of unintended consequences.....

kingstreet

slinkydonkey wrote: »

How can I find a decent advisor who knows about the help to buy scheme?

What do you want to know?

This is a good start;-

http://www.homesandcommunities.co.uk/sites/default/files/our-work/help_to_buy_buyers_guide_sept_2013.pdf

slinkydonkey

Ok thanks im actually less likely to use it as the interest rate is alot higher than my current mortgage. The only issue being was that I have 90 days to port my current mortgage and im running out of time so was looking at all the options. Its a bit of a an odd scheme though they say its for existing home owners too ...but im assuming most home owners properties have gone up in price so they should have a deposit hence the scheme is a bit messed up...

kingstreet

No. There are many owners who bought at the top of the market who do not live in London and who have no equity in their homes.

slinkydonkey

kingstreet wrote: »

No. There are many owners who bought at the top of the market who do not live in London and who have no equity in their homes.

Ok yep that makes more sense I won't be using the scheme now anyway but thanks for clarifying

jacobtheamish

What was the name of the Builders mortgage advisor. The company not the individual?

slinkydonkey

Just Mortgages to be fair he was only doing his job but maybe these mortgage advisers should start showing how much interest you actually are paying... its funny how these pay day lenders now have to show how much interest you are paying ...

jacobtheamish

They will have to provide you with a KFI which amongst lots of other information, will quite clearly show you what rate and how much you will be paying for each pound you borrow. This will happen once they make a product recommendation.
There are a dozen or so HTB mortgage products, so until the advisor has established your position by means of a factfind etc, it is not possible to tell you what rate you will be paying on the first time you speak.