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Help to buy
Daltonxlouise
Posts: 7 Forumite
Need any help possible please
Basically me and my partner went to see a new build apartment yesterday. We assumed it was rent but it turns out it's help to buy. The builder provides the 5% deposit and the government pays 20% deposit which is interest free for 5 years we pay £350 for 6 months while the mortgage is going through, once the mortgage is done the property belongs to us after 6 months and our mortgage payments stay at £350 a month. After 5 years Interest free the equity to the property should have built and they advise us to re mortgage to be able to pay off the 25,000 before the interest starts to add. Has anybody else heard of this we have so many mixed reviews it's making us doubt the whole thing
Basically me and my partner went to see a new build apartment yesterday. We assumed it was rent but it turns out it's help to buy. The builder provides the 5% deposit and the government pays 20% deposit which is interest free for 5 years we pay £350 for 6 months while the mortgage is going through, once the mortgage is done the property belongs to us after 6 months and our mortgage payments stay at £350 a month. After 5 years Interest free the equity to the property should have built and they advise us to re mortgage to be able to pay off the 25,000 before the interest starts to add. Has anybody else heard of this we have so many mixed reviews it's making us doubt the whole thing
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Comments
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Please check that you don't have to pay ground rent (or whatever else they call it), some builders have been known to ""forget"" to mention this and then it comes as a surprise.Daltonxlouise wrote: »Need any help possible please
Basically me and my partner went to see a new build apartment yesterday. We assumed it was rent but it turns out it's help to buy. The builder provides the 5% deposit and the government pays 20% deposit which is interest free for 5 years we pay £350 for 6 months while the mortgage is going through, once the mortgage is done the property belongs to us after 6 months and our mortgage payments stay at £350 a month. After 5 years Interest free the equity to the property should have built and they advise us to re mortgage to be able to pay off the 25,000 before the interest starts to add. Has anybody else heard of this we have so many mixed reviews it's making us doubt the whole thingI'd rather be an Optimist and be proved wrong than a Pessimist and be proved right.0 -
This is nothing to do with the HTB scheme.Daltonxlouise wrote: »we pay £350 for 6 months while the mortgage is going through
You must put down at least 5% from your own resources. A 5% builder's deposit has to be on top of your deposit, not instead of it.
You appear to need one of these;-
https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-oct-16-V1016.pdfI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
This is why we're confused because we don't have to pay any deposit! They provide the 5% and the government pays 25% we don't understand what the builder is gaining for doing this?0
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Daltonxlouise wrote: »This is why we're confused because we don't have to pay any deposit! They provide the 5% and the government pays 25% we don't understand what the builder is gaining for doing this?
They get to avoid "Price Discovery" for another few months, that is all these schemes are for.0 -
Daltonxlouise wrote: »This is why we're confused because we don't have to pay any deposit! They provide the 5% and the government pays 25% we don't understand what the builder is gaining for doing this?
Who is the builder ?0 -
So is it genuine and safe to continue?0
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The company is berkshire homes and the builders are B.A.K contracts0
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Daltonxlouise wrote: »This is why we're confused because we don't have to pay any deposit! They provide the 5% and the government pays 25% we don't understand what the builder is gaining for doing this?
Isn't it 20% the government puts in ?0 -
10% - 20% (in 1% increments) Outside London, upto 40% in London.Isn't it 20% the government puts in ?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Yes government puts 20% in but also Berkshire house provide us with the 5% deposit instead of us funding it. They find us the mortgage etc it all seems abit to good to be true but people say go for it and others are saying we will end up in debt in 5 years if we can't pay the £25,000 back0
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