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First Time Buyers - Equity loan?
Lala__7
Posts: 11 Forumite
Hi all, looking for some advice. Myself and partner are looking to buy our first home and are considering the help to buy equity loan for a new build (however I have heard mixed reviews). We currently have approx £45,000 saved as our deposit and money set aside for fees attached with buying a new home.
We have a combined salary of £55k and wondered if anyone could advise on what the best option for us might be? I have tried using the equity loan calculator but all I seem to see is the 5% deposit when we’re in a position to put down more than that. We are looking at properties between £330k-£350k which is the average price for the property type we’re keen on in the area.
Thanks in advance!
We have a combined salary of £55k and wondered if anyone could advise on what the best option for us might be? I have tried using the equity loan calculator but all I seem to see is the 5% deposit when we’re in a position to put down more than that. We are looking at properties between £330k-£350k which is the average price for the property type we’re keen on in the area.
Thanks in advance!
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Comments
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You can put down whatever you want deposit in addition to the equity loan.
I put down 20% deposit and 20% equity share.0 -
Speak with a specialist H2B mortgage lender, this one who frequents the mortgage board with the initials N-H, can't think how you spell her name!Mortgage started 2020, aiming to clear 31/12/2029.0
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Apologies it's Haras-N you want to comment!Mortgage started 2020, aiming to clear 31/12/2029.0
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Thank you. Is there a way of getting them to advise on this post?0
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The minimum deposit is 5%, the maximum is 55% as you need a 25% mortgage as a minimum.
You can choose an equity loan from 10% to 20% in 1% increments (assuming England outside London.)
As the equity loan is a percentage of the property value, what you will pay back in future depends on the future value of the property and no-one knows what that might be.
After five years, fees are payable starting at 1.75% of the loan in year six and these increase each year. The buyer's guide has an example.
https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-Feb-2018-FINAL.pdf
It's virtually impossible to advise someone what do do as there are many, many variables to take into account. I would suggest discussing it with an experienced newbuild/HTB mortgage broker.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 -
Hi all, looking for some advice. Myself and partner are looking to buy our first home and are considering the help to buy equity loan for a new build (however I have heard mixed reviews). We currently have approx £45,000 saved as our deposit and money set aside for fees attached with buying a new home.
We have a combined salary of £55k and wondered if anyone could advise on what the best option for us might be? I have tried using the equity loan calculator but all I seem to see is the 5% deposit when we’re in a position to put down more than that. We are looking at properties between £330k-£350k which is the average price for the property type we’re keen on in the area.
Thanks in advance!
I'm not sure that with your joint income and deposit that you could get a large enough mortgage to buy a £330k to £350k property without an equity loan.
Does the £45k include money for a solicitor, survey, SDLT* etc?
* FTB SDLT relief only goes up to £300k so the OP will have to pay 5% on anything £30k to £50k.0 -
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Thank you. Is there a way of getting them to advise on this post?
I haven't sussed out how to tag people into posts yet!
Nothing stopping you from reading through similar posts, seeing which broker you get a good feel from and sending them a message. Several of us have picked our broker that way.Mortgage started 2020, aiming to clear 31/12/2029.0 -
We would be looking to pay off the equity loan within the 5 years ideally. I’m not overly sure on how this works. I’ve seen so many mixed reviews on the equity loan that it all seems daunting!0
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Website for Target the current post-sales HTB Agent;-We would be looking to pay off the equity loan within the 5 years ideally. I’m not overly sure on how this works. I’ve seen so many mixed reviews on the equity loan that it all seems daunting!
https://www.myfirsthome.org.uk/
where you can find out about redeeming an HTB loan.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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