Help to buy equity loan.... very unhelpful !!!

AdrianC

sky_rat wrote: »

So these 400 properties you found (including apartments) in 10 mile radius (as the crow flies) in reality reduce drastically.

To how many?
How many of those have you viewed?

And some of these properties are not very nice, so I would rather pay a bit extra (e.g. help to buy, shared ownership) for a nicer property. Remember... I wouldn't have the time or money to decorate - the property would have to stay as it is !

Oh, right. You're one of those. Want your dream house, absolutely 100% condition and to your taste, on a shoestring in the perfect location - and NO compromise can possibly be brooked.

Well, good luck.

It would also be nice to leave something for my daughter when I'm gone.

Have you considered starting with "a realistic attitude"?

sky_rat

AdrianC wrote: »

Oh, right. You're one of those. Want your dream house, absolutely 100% condition and to your taste, on a shoestring in the perfect location - and NO compromise can possibly be brooked.

And this is what irritates me.... when you are paying nearly a quarter of a million pounds for a small 2 bedroom property you would expect something half decent. I'm sure you have heard in the media how highly over inflated house prices are!!! You get very little for your money, especially in a commuter town for London. London house prices are absolutely absurd, I don't know how anyone could pay the asking prices for those properties. It's not like Im young and just started a career after graduating, I've worked hard and climbed up the career ladder since graduating 15 years ago. And even with help from parents (which I would prefer not to have and be able to afford it myself) its still a struggle, despite the fact of having a budget 5 times my income!! I have put house hunting on hold as I have become demoralised and demotivated. But I felt this way before I started looking because the cost of housing (and rent) disgusts me. I had my hopes raised when I came across the help to buy scheme as this would have cost me the same I am paying in rent. For the moment I need a break from it all and will have to rethink my circumstances.

sky_rat

airyfairy76 wrote: »

I'd be looking for properties up to around £210k. You may have the potential of having a cheeky offer accepted, and it makes a big difference to the number of properties returned. Have you viewed many "second hand homes"?

I put an offer in for a second hand home which was accepted, but then had to cancel because I couldn't use the help to buy (equity) scheme as this is for new builds only.

Pixie5740

What about HTB Mortgage Guarantee? Then you'd only need a 5% deposit.

Does it have to be a 2 bedroom property? I know your daughter stays with you but what about a 1 bedroom property with a sofa bed in the living room.

Where there's a will there's a way.

airyfairy76

sky_rat wrote: »

I put an offer in for a second hand home which was accepted, but then had to cancel because I couldn't use the help to buy (equity) scheme as this is for new builds only.

Sorry, I should have been clearer - have you viewed any houses that fall within your budget (or slightly over) that you could afford without H2B?

sky_rat

Pixie5740 wrote: »

What about HTB Mortgage Guarantee? Then you'd only need a 5% deposit.

Does it have to be a 2 bedroom property? I know your daughter stays with you but what about a 1 bedroom property with a sofa bed in the living room.

Where there's a will there's a way.

HTB mortgage guarantee scheme is no use. It would mean I still have to find the 20% that I would have received from the HTB equity loan. So instead of looking for properties up to £250k (£20k deposit, £180k mortgage and £50k equity loan) I can only look at properties up to £200k (£20k deposit, £180k mortgage).

As stated on this website...

"As lenders are taking the same risk as if you had a 20% deposit, they can therefore offer more mortgages at 95% LTV than they would’ve done - and that’s the big impact, its not so much they’re far cheaper, just they’re far more available.

Monthly repayments will be higher from outset than the Help to Buy equity scheme (which is only available on new-build purchases) as there is no interest free loan element."

A 1 bedroom property is far from ideal. In Northampton I rented a 3 bedroom linked detached house with a big garden. I am now paying £100 a month more for a smaller 2 bed flat in MK. I am trying to move forward, not backward. I would rather continue to rent the small 2 bedroom flat I have than buy a 1 bedroom flat.

sky_rat

airyfairy76 wrote: »

Sorry, I should have been clearer - have you viewed any houses that fall within your budget (or slightly over) that you could afford without H2B?

I've not been impressed with the limited properties available in my budget so I've not viewed any of them. I've not searched for any second hand properties over my budget, I suppose it might be possible to haggle but I'm not particularly good at haggling! I would prefer to pay a bit more for a decent property, but the only way this can happen is with a help to buy 'equity loan' or shared ownership. Unfortunately these are only available on new builds and limited to very few people who meet the strict criteria. Hence the subject of my post !

Pixie5740

Do you want some ketchup for that chip on your shoulder?

I know what the HTB mortgage guarantee scheme is that's why I suggested it.

With the £20k gift from your parents that still gives you the option of a £200k property with a 90% LTV, and yes there are properties available in MK from £200k.

I wouldn't necessarily say that purchasing 1 bedroom flat is a step back from renting a 2 bedroom flat.

Lots of first time buyers are in a similar position to yourself, many of whom don't have the luxury of a £20k gift from the Bank of Mum & Dad, and they manage. The only things stopping you from buying somewhere is you and your self pity.