First Time Buyer - Help to Buy Scheme

sophieg27

Hi All,


I'm interested in peoples opinions on the help to buy scheme, in particular, anyone that's applied previously and what criteria they were asked for?


I earn £27k per annum and have found a house for £168k and have the 5% deposit but am unsure whether to apply on my own or with my brother who is keen on purchasing the house with me. Does the fact that the house will have 2 spare rooms that can potentially be rented out to a lodger impact the decision?


Any thoughts would be greatly appreciated!


Thanks

brit1234

5 1/2 times salary, seems dangerous. What happens when interest rates rise?

MoneySaverLog

No, it should not affect it. I'm waiting on an authority to proceed and was told I would qualify by the agents who screen on behalf of the developers and have two spare rooms too.

MoneySaverLog

Brit1234 HTB not sure they are scams just know what you are agreeing to and have a plan to pay it back in the first 5 years.

As new builds are overpriced initially, it's possible that you end up paying less than today's value when paying it back before the juice starts. Though I'm not banking on it.

sophieg27

Thanks for the response both! Yes, am aware of what I'm signing up to with regards to rates, pay rise is coming in April and also have £4k car allowance to factor into figures.


Thanks for response regarding the rooms, that's a relief - how long has the whole process taken you?

thequant

sophieg27 wrote: »

Thanks for response regarding the rooms, that's a relief - how long has the whole process taken you?

I think he means no it wont effect your mortgage application, i.e. you wont be given a larger mortgage because you can rent out rooms.

sophieg27

thequant wrote: »

I think he means no it wont effect your mortgage application, i.e. you wont be given a larger mortgage because you can rent out rooms.

Thanks, yes, understood, I was concerned that applying as a single applicant for a house with 3 rooms would be a problem not that I would get a larger mortgage on the basis that I could rent.

Thank you though.

MoneySaverLog

Still in the middle of everything at the moment. Waiting on orbit before the full application can proceed along with arranging the valuation. Solicitors are on board for the searches etc though.

It's a waiting game now.

Turnbull2000

brit1234 wrote: »

5 1/2 times salary, seems dangerous. What happens when interest rates rise?

That'll be a good 10 years away. Plenty time to pay off equity, gain promotion, or see your pay rise 20%.

MoneySaverLog

Turnbull2000 wrote: »

That'll be a good 10 years away. Plenty time to pay off equity, gain promotion, or see your pay rise 20%.

I'm fixing for 4 years though

Ky-An

My thought is what if your brother wants to move on, buy with partner etc? Can you buy him out in the future and pay back the government their 20%. I have done everything alone and you know what it's all mine!