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Mortgae help to buy confusion
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ladybirdpoo
Posts: 1 Newbie
Would really appreciate some thoughts on the following:
Am thinking of using the Help to Buy 2 scheme to purchase a property at 150,000. I have 5% deposit but have been quoted a mortgage at 4.99% with monthly repayments of £781.27 for 35 years or £832.21 for 25 years. This seems rather a lot considering I've just paid to get out of my last mortgage which was 6.8%!
On the other hand, a new build property at £190,000 would mean £653 per month over 25 years using the original Help to buy scheme with a 2.645 mortgage.
It doesn't make sense! Is it worth paying the extra for the 150,000 property for 2 years and hope I can get a lower interest rate in 2 years or go for a more expensive new build with lower monthly repayments from the start, but with repayments to be made within 5 years?
Am thinking of using the Help to Buy 2 scheme to purchase a property at 150,000. I have 5% deposit but have been quoted a mortgage at 4.99% with monthly repayments of £781.27 for 35 years or £832.21 for 25 years. This seems rather a lot considering I've just paid to get out of my last mortgage which was 6.8%!
On the other hand, a new build property at £190,000 would mean £653 per month over 25 years using the original Help to buy scheme with a 2.645 mortgage.
It doesn't make sense! Is it worth paying the extra for the 150,000 property for 2 years and hope I can get a lower interest rate in 2 years or go for a more expensive new build with lower monthly repayments from the start, but with repayments to be made within 5 years?
0
Comments
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The HTB - Equity Loan scheme means you will have a loan of £38k (20% of £190k) on top of your mortgage. That has to be repaid at some point, fees start in year six and when you sell or repay, you repay 20% of the property value then, not what you paid originally.
You are trying to compare apples and oranges. They are totally different schemes for totally different needs.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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