Advice on new build Flat

tunnie123

Hi guys after a stressful few months we have finally completed and moved in on our new build flat.
I have a couple of question's which you may all think are stupid but I am a complete novice at this.


we bought our new build 2 bed flat and we really love it. the asking price was 179995 and we managed to get it for 170000 including all furniture [was the show flat] integrated appliances 1k towards solicitor fees and the service charge paid for a year. we used HTB Equity loan. we have a 2 year fixed rate of 1.86 paying 423 a month then 3.99 after 2 years.


my first question is after 2 years if we want to remortgage to another fixed term can we do this while still keeping the equity loan [obviously its interest free for 5 years so seems silly paying it off befor then unless we are moving] or would we have to then pay it back and thus leaving us with only our original deposit back plus the 2 years equity we have gained. surely this would mean that we would get a worse rate anyway as our deposit would be a lot lower than it was when we were using the equity loan and therefore we may even end up paying more by remortgaging than we would if we just carry on with the variable rate?


secondly, during this 2 years we should still have some spare money to save, would you suggest over paying the mortgage or just building up in a savings account?


and lastly on our completion statement it says that the sale price was 179995 and then below takes off money from the discount that we managed to get on the flat. so will this mean that places like zoopla will say that it was sold for 179995 or will it be the 170000 that we actually paid? obviously hoping that if it was saying it was sold for 179995 then the depreciation from it not being a new build wont feel so bad for us especially when we saved on furniture and fees etc.


sorry if any of these points sound stupid just very new to all of this and want to make sure in the future I make the right decision :]


thanks

amnblog

Yes, you can get a new rate keeping the equity loan.

Either from your current Lender or a few others that are in the market.

Your completion paperwork will tell you what the purchase price is registered at.
The Zoopla record is irrelevant.

dimbo61

The price recorded at the Land registry is the price you paid !
What it is worth in 2 years time when it is no longer " New Build" is anyone's guess.
This will depend on location, size, local market for 2 bed flats, condition, demand etc
What you can do now is build up savings.
Save into a regular saver ! Nationwide do a 5% saver
If you can do that and overpay each month it will put you in a better position when you need to remortgage.

sal_III

dimbo61 wrote: »

The price recorded at the Land registry is the price you paid !
What it is worth in 2 years time when it is no longer " New Build" is anyone's guess.
This will depend on location, size, local market for 2 bed flats, condition, demand etc
What you can do now is build up savings.
Save into a regular saver ! Nationwide do a 5% saver
If you can do that and overpay each month it will put you in a better position when you need to remortgage.

The Nationwide 5% savers is a bit of a joke. It's only marginally worth it if your main current account is with them. Otherwise you are better off switching to someone that will give you £100+ outright, instead of getting £80 in interests from that saver.

The estimated balance after 12 months based on 12 monthly deposits of £250 with an interest rate of 5.00% AER/ gross p.a. (variable) would be £3,081.25.

You might as well just overpay the mortgage.