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Help to buy
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![[simon]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
[simon]
Posts: 241 Forumite
Hello friends.
I want to know what people think to my idea.
1. Current situation
Currently I am living at home saving for deposits to buy. My aim is to save 25 / 30 k of which 20 / 25 k will be the deposit and the 5 k left over for expenses / legal / moving costs / furniture to get me up and running.
I have 15k so far
2. My idea
Even when I have the deposit needed if I us help to buy and just put down 5% and lend the rest and pay it over 5 years in monthly instalments
That way I always have money in bank if needed
Good ? Bad ?
Let me know ...
I want to know what people think to my idea.
1. Current situation
Currently I am living at home saving for deposits to buy. My aim is to save 25 / 30 k of which 20 / 25 k will be the deposit and the 5 k left over for expenses / legal / moving costs / furniture to get me up and running.
I have 15k so far
2. My idea
Even when I have the deposit needed if I us help to buy and just put down 5% and lend the rest and pay it over 5 years in monthly instalments
That way I always have money in bank if needed
Good ? Bad ?
Let me know ...
0
Comments
-
Not quite sure what your idea is from your post I'm afraid?
Do you mean overpay the mortgage each month to try cover the Help To Buy loan over the first 5 years you own the property? Or saving an amount each month in a bank account over the 5 years to pay it off?
If you are set on using HTB, I'd definitely recommend overpaying on the mortgage to build up equity so you can remortgage the help to buy loan onto the mortgage amount at the 5 year point.
But really, I'd say if you can afford the monthly mortgage payments without it then don't use it. I used it as I had a deposit but couldn't afford the monthly mortgage without the htb 20% loan coming off the mortgage amount needed. But now I'm coming to sell the property having to sort out repaying the HTB loan just adds more complications to the sale, and extra costs that are coming out of my equity! As well have having to pay more back to HTB as my property has risen in value!
Hope that makes sense?!0 -
I wouldn't as you will lose a fortune if the house goes up in value.
If you have the cash to do a proper mortgage I'd recommend it0
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