Shall I stick to my plan of getting a repayment mortgage, or help 2 buy

dmo84

Hi all,

I am 33 years old, currently looking to get a mortgage sometime in 2018, maybe 1st quarter or 1st half of 2018. I am single at the moment
so would be going at it alone.

Basically I am looking for a property for around £125-135 or maybe £140k depending on what I find, I currently have
been saving and currently have £23500 in savings, by Feb/March I should be able to add a few more extra K, so with
H2B isa bonus I should have around £26-27k to play with.

I was initially aiming to get a repayment mortgage, as people were steering me away from schemes like shared ownership
and help to buy. Thing is I wanted to save enough to have enough of a buffer so that when I did put down a £12500, or £13500
or maybe a little more deposit, it didnt wipe my savings out.

I would also need to pay things like fee's, furniture etc but I still wanted to keep a decent fund in savings to start building
up again.

Is it worth me sticking to my guns and going for the repayment mortgage, or have a 2-3 year plan on a help 2 buy scheme,
where I buy a property on help to buy, use less of my savings on deposit, and look to move out within 2-3 years possibly on
to a standard repayment mortgage?

I dont understand too much about the help to buy scheme, but from what I have heard I would rather just try and go for repayment
if I can.


any advice appriciated!

Thanks

kingstreet

Not sure you have done sufficient research at this point. If you use the HTB scheme to buy a newbuild, you will have a repayment mortgage.

Only the HTB loan is payment-free for five years. After that you pay fees which increase each year.

Guide here - https://www.helptobuy.gov.uk/equity-loan/equity-loans/

kingstreet

The mortgage element of shared ownership is also a repayment mortgage.