ftb too big too soon?

nothomealone

Knew i would forget something. furniture- we have already purchased everything small enough to fit in current homes. we only need bed, sofa, dining table, washer and maybe a few more cheaper items.
we would be moving in with around a 10k buffer plus adding 300 to it each month aswel as overpaying 300 pm

getmore4less

No need to furniture a place with new

Plenty of second hand stuff cheap and free stuff on freecycle.

There is a surplus of good second hand stuff out there.

30k after tax is 1900 ish -> £1935
26k after tax is 1600 ish -> £1708

for standard tax code that makes £3643
http://www.listentotaxman.com/index.php

lee111s

Are you sure you take home 4k? Do you not pay into a pension? I'm on £150 short of 30k and I come out with £1760 after pension, shares and union monies. I do have a lodger though and that £320 is a nice help I think your maths is wrong, 2k for bills for 2 people in a 4 bed house with only a £600 mortgage also seems very high, what are your estimated bill costs?

To put it into perspective I live in a 3 bed semi and have a lodger. My girlfriend stays over 4-5 nights a week and my bills are £950 with a £526 mortgage. That also includes gym, mobile and 3 lots of pet insurance. Food and diesel combined is about £250-300 a month. I work from home so spend litttle on diesel however gas and electricity are a little higher than if I didn't obviously.

new_home_owner_3

Am i right in thinking the help to buy is a interest free loan for up to 5 years, then a interest rate of 1.75% is added and then each year after this it goes up?

If this is the case you need to take into account you will need to pay this back as well.

so you say remaining mortgage is not a 129000 pounds but you will owe 169000.

am i wrong or right with this?

Downsizing__for_sanity

Can you try to buy furniture etc from cash flow rather than your savings? As lots of people are trying to downsize right now, you can find good quality second hand stuff for a fraction of the new cost. Same as nursery furniture - some people pay a fortune for the designer stuff like cot beds and want rid of it a couple of years later. Worth looking around for. I would add - for things like your sofa, bed - go for quality - Marks and Spencer etc usually have half price deals on in the New Year. I know people who've bought a cheap sofa in the DFS or similar sale, and regretted it 2 years later when it's broken and they're still paying for it.

Downsizing.

new_home_owner_3

new_home_owner wrote: »

Am i right in thinking the help to buy is a interest free loan for up to 5 years, then a interest rate of 1.75% is added and then each year after this it goes up?

If this is the case you need to take into account you will need to pay this back as well.

so you say remaining mortgage is not a 129000 pounds but you will owe 169000.

am i wrong or right with this?

if this is right you will need to pay a extra 666 pound a month over the 5 years to not start paying interest on this.

kingstreet

The equity loan shown is £40,000. The fee starts at 1.75% per annum in year six. That's a monthly payment of £58.33.

Each year, the fee increases by RPI + 1%, so if inflation runs at 5%, the rate in year seven will be 1.86% (£62 per month) in year eight 2.01% (£67 per month) and so on.

Here's a copy of the HTB -EL guide;-

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

pinkteapot

One thing to bear in mind with a new-build is the sheer volume of little things you have to buy. It'll have no curtain poles or tracks, no curtains, no light-shades, no coat hooks, etc etc etc. All those little things that are usually already fitted when you buy a 'second hand' house, and that make a new-build feel very sparse in their absence.

new_home_owner_3

kingstreet wrote: »

The equity loan shown is £40,000. The fee starts at 1.75% per annum in year six. That's a monthly payment of £58.33.

Each year, the fee increases by RPI + 1%, so if inflation runs at 5%, the rate in year seven will be 1.86% (£62 per month) in year eight 2.01% (£67 per month) and so on.

Here's a copy of the HTB -EL guide;-

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

thanks that clears it up a bit, i think a lot of people need to look at this, they seem to be burying their heads in the sand, but 5 years will soon come around and this is money they will still owe, it seems a lot of people seem to think this money is free.

duchy

How upset would you be if you had to break into the over payments ? If you didn't would it cover the HTB within five years ? If you did -what's the contingency plan ?