HTB for FTB or not?

d0nkeyk0ng

Given my situation here >clicky<, I'm looking at what to do.

My original plan was to escape from my parental home in a real rough area and buy my own house albeit a smaller one in a nicer area. I would be looking at £250k homes (that's lower end of the market) with 10% deposit. The plan was to then move to a larger house in the future, maybe after 5-10 years, still within the same area.

I'm now debating whether it would be better to buy that larger house now (say for £350k) with HTB-MG. The repayments are slightly larger by about £300pcm.

My income is £60k gross
Hers is £27k but as in the above thread, her name is on her brother's mortgage. I have no idea how long it would be on there for but I don't foresee it coming off any time soon.

WWYD?

kingstreet

HTB - MG only helps people with a deposit upto 10%.

You already have 10%, so what do you think it will do for you?

You also get better rates on non-HTB MG products at, or below, 90%.

d0nkeyk0ng

kingstreet wrote: »

HTB - MG only helps people with a deposit upto 10%.

You already have 10%, so what do you think it will do for you?

I have 10% for a £250k home that I plan to live in for 5 years but only 7% for a £350k home that I could probably live in for 15-20 years.

kingstreet

Ah, I see.

I wondered if you were getting confused about the HTB schemes. There are other options on upto 95%, not just HTB too.

d0nkeyk0ng

I might be. I know there's HTB-EL for new builds and then there's supposed to be HTB-MG for those who can't generate deposits. You're right - I could just look at 95% LTV but I think they may be limited to a lower mortgage than HTB-MG.

kingstreet

They may be at £500k or more, but not at your purchase level.

I suggest talking to an independent broker and try to get a better overview of your options.