minimize losses

amnblog

spezial wrote: »

let's say I pay a minimum deposit, 10k with the help to buy scheme
and I get the 20% gov loan without interest for 5 years (40k)
and the rest as a mortgage (150k)

Is it possible to have my 130k somewhere invested, so that the gains from them will be enough or even more than the interest of the mortgage? So that:
- I will retain my capital though out the mortgage, let's say 10 years
- I will pay the interest rates for 10 years from the interest gains of my capital
- I will increase slightly my capital as the interest gains of my capital will be more than the 3% which is the mortgage interest rate
and by saving 1k per month, I will be able to repay the mortgage in 10 years from my savings

or is there any other way?

Offset your capital to reduce your interest charge and overpay the mortgage.

spezial

amnblog wrote: »

Offset your capital to reduce your interest charge and overpay the mortgage.

thanks but what that means?

silvercar

spezial wrote: »

what you mean first sale in the block?

The first re-sale. ie someone has bought new and then sells it on.
--

Offset your capital to reduce your interest charge and overpay the mortgage.

thanks but what that means?

offset mortgage. So the capital is in an offset account with the lender and the lender then only charges interest on the outstanding amount.

dimbo61

Might be hard to get an offset mortgage at 95% LTV on a new build.
Better to put down 25% deposit and put rest of savings into offset account.
Overpay mortgage each month and build up savings in offset.

spezial

and what is the benefit I will gain out of it? I will end up paying less interest?

tomtontom

OP claims* to earn £16K - a £150K mortgage is likely to be far out of his reach.

* His claims change regularly and are best taken with a pinch of salt

spezial

even if it is offset mortgage?

ViolaLass

Why not just use the £140k as deposit, get £60k mortgage and overpay?

spezial

well, I thought maybe there could be a better way

ViolaLass

spezial wrote: »

well, I thought maybe there could be a better way

I think what with this and your other thread you're overcomplicating this.