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Decision Decision
NOVAMET21
Posts: 197 Forumite
Hi all
We are looking to buy a house next year. As it being the Brexit year, is it good idea to buy?
Anyway, we are in a dilemma to either buy a second hand house worth around £350k or buy a brand new house worth £400k with Help to Buy scheme.
Which option would be better? Probably second hand house right? The thing is that most brand new house will have downstairs toilet and everything will be under warranty.
In regards to Help to Buy scheme, after 5th year the repayment increases every year due to inflation plus 1%? Where can I find the calculator that calculates this to see monthly repayment and outstanding loan?
Also, is the minimum amount we can pay is the 10% of the loan amount or the 10% of the actual value of the house?
Regards
AG
We are looking to buy a house next year. As it being the Brexit year, is it good idea to buy?
Anyway, we are in a dilemma to either buy a second hand house worth around £350k or buy a brand new house worth £400k with Help to Buy scheme.
Which option would be better? Probably second hand house right? The thing is that most brand new house will have downstairs toilet and everything will be under warranty.
In regards to Help to Buy scheme, after 5th year the repayment increases every year due to inflation plus 1%? Where can I find the calculator that calculates this to see monthly repayment and outstanding loan?
Also, is the minimum amount we can pay is the 10% of the loan amount or the 10% of the actual value of the house?
Regards
AG
0
Comments
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If inflation runs at 5%, 1.75% in year six becomes 1.86% in year seven, 1.97% in year eight, 2.08% in year nine and so on.In regards to Help to Buy scheme, after 5th year the repayment increases every year due to inflation plus 1%? Where can I find the calculator that calculates this to see monthly repayment and outstanding loan?
The HTB Buyer's Guide shows this on P21 IIRC;-
https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-Feb-2018-FINAL.pdf
10% of the property value. If you have a 20% equity loan you can repay it in no more than two chunks.Also, is the minimum amount we can pay is the 10% of the loan amount or the 10% of the actual value of the house?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
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