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H2B Equity Loan + our situation q's
GoldenShadow
Posts: 968 Forumite
Done a couple of threads lately as our situation makes things quite variable, currently living with parents but considering H2B.
I didn't love the thought of H2B because I'm less keen on the style of new builds/allocated parking. And I was a bit unsure how easy it would be to pay off the Equity Loan. Fast forward to now, there are lots of new houses around my way (some with drives and separate kitchens/dining rooms) and I had a bit of a think about the EL. People talk about new houses depreciating more etc, but the EL will take the potential hit too, wont it?
OH and I earn 52K combined. I'm on a fixed term contract til March 2017 (grad scheme), he's permanent and has been for 5 years. We've got about 14K saved and I wouldn't want us going over 240K property value for H2B, so my understanding is a mortgage of 180K would be required for that (48K EL, 12K us), but I would be looking for something cheaper ideally. Aware the EL can be paid back in one big chunk or two chunks, also heard people say they want to remortgage and include the loan in that, is that an option? Without H2B we'd be looking at a similar mortgage (ie. 200K ish property) but a non new build, and of course rates are higher with an 85% or 90% mortgage which is what we'd probably be aiming for.
Are there major drawbacks that I haven't come across, particularly H2B related? I'm aware my job situation means I will need a broker, not sure if my job will impact H2B eligibility?
Does this sound feasible? I'd be grateful for any thoughts, I get a bit carried away typing, so apologies for the slightly incoherent waffle, I have cut it down a bit, promise :rotfl:
I didn't love the thought of H2B because I'm less keen on the style of new builds/allocated parking. And I was a bit unsure how easy it would be to pay off the Equity Loan. Fast forward to now, there are lots of new houses around my way (some with drives and separate kitchens/dining rooms) and I had a bit of a think about the EL. People talk about new houses depreciating more etc, but the EL will take the potential hit too, wont it?
OH and I earn 52K combined. I'm on a fixed term contract til March 2017 (grad scheme), he's permanent and has been for 5 years. We've got about 14K saved and I wouldn't want us going over 240K property value for H2B, so my understanding is a mortgage of 180K would be required for that (48K EL, 12K us), but I would be looking for something cheaper ideally. Aware the EL can be paid back in one big chunk or two chunks, also heard people say they want to remortgage and include the loan in that, is that an option? Without H2B we'd be looking at a similar mortgage (ie. 200K ish property) but a non new build, and of course rates are higher with an 85% or 90% mortgage which is what we'd probably be aiming for.
Are there major drawbacks that I haven't come across, particularly H2B related? I'm aware my job situation means I will need a broker, not sure if my job will impact H2B eligibility?
Does this sound feasible? I'd be grateful for any thoughts, I get a bit carried away typing, so apologies for the slightly incoherent waffle, I have cut it down a bit, promise :rotfl:
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