Government mortgage schemes

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Comments

  • Shonari
    Shonari Posts: 2 Newbie
    Hi

    I'm hoping someone can help me with this? I am 53 living with my 31 year old daughter in rented accommodation. The landlord has decided he wants to sell the property so we need to move again.

    We both work full time and want to get onto the housing ladder again.
    I don't know if we can get a mortgage due to my age and I don't know if we could go through the Help To Buy scheme?

    Any advice would be hugely appreciated.
    Thank You
  • kingstreet
    kingstreet Posts: 38,760 Forumite
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    It's all about affordability.

    Can you afford the amount you wish to borrow in the time you have to pay it off, normally before retirement?

    The HTB scheme will help you if you have less than 10% deposit. It will not help you to borrow more. Nor does it over-ride affordability.

    Check lender affordability calculators and seek help from an independent broker who will be able to plan the most sensible route forwards with you.
    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.
  • Shonari
    Shonari Posts: 2 Newbie
    We can afford a mortgage, we are paying rental in the region of £800 pcm. What I'm not sure of is how long i could get a mortgage over, for instance if retirement age is 65 then I would only be able to apply for a mortgage for 12 years?

    If this is the case then mortgage payments would be too high and that would answer the question. I'm assuming I wouldn't be able to get a 25 year mortgage although it would be a joint mortgage with my daughter.

    To be honest I don't know where to start :(
  • kingstreet
    kingstreet Posts: 38,760 Forumite
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    You need to speak to a broker, as already suggested.

    Some lenders will not go past your state pension age (66) without evidence of income in retirement; while others will consider to age 70 without.

    Affordability is calculated by a lender calculator, not by virtue of the rent you currently pay.
    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.
  • decymru
    decymru Posts: 2 Newbie
    Hi all,

    Apologies if covered elsewhere. First time posting.

    My wife and I have just moved into our new home - purchased through Help to Buy. We're trying to work out the process for repayment of the 20% Help to Buy.

    We understand that this can be done in 2x 10% of one chunk of 20% of the value of the home at the time of repayment. Obviously with rising house prices there is an incentive to repay as soon as possible so that the increase in value (and thus 20% element repayable to the Government) is a small as possible.

    HOWEVER advice from the scheme administrators suggests that the repayment would be based on the market value of the house as is at the time of repayment. The snag is that the house was newbuild - sold without elements such as white goods, flooring, wardrobes and with a bare soil garden. We have worked hard, and paid alot to install flooring, white goods etc - which have added value to the home. When we go to repay the HTB the house price will contain the value of these improvements.

    Essentially the Government will be taking a 20% cut on the value of home improvements that we have made. This seems terribly unfair. At face value this means the £6000 of flooring we have installed will have cost us at least £7,200 (£6,000+ [20%]) due to the value it adds to the house. In reality it's likely to be far more.

    Has anyone encountered this problem yet?
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
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    The "improvements" you mention may not add as much value as you expect.
  • decymru
    decymru Posts: 2 Newbie
    Thrugelmir wrote: »
    The "improvements" you mention may not add as much value as you expect.

    Thanks - however the principle that repayment is made on the value of such improvements seems rather injust...and perhaps an oversight.
  • kingstreet
    kingstreet Posts: 38,760 Forumite
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    Typically, the value of a newbuild falls in the first few years of occupation by anything upto 20%.

    I suspect you need not worry too much about the cost of your floors.
    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.
  • nonni_2
    nonni_2 Posts: 5 Forumite
    Hi.
    Im totally new to all this so excuse me if i make mistakes
    I am desperate to get on housing ladder. Am a mother of 4 children i live with my children and my partner in rented house that i will need to b out of by october so am looking at options to get our family home that i am craving.
    We are struggling to get a deposit together so need advice on if i can get a 5-10% deposit together what my options are. Am thinking shared ownership but i dont even know where to start. How do i find out if im eligible or able to get a mortgage????
    Pls help...thanks so much in advance
  • kingstreet
    kingstreet Posts: 38,760 Forumite
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    Shared Ownership is not a cheap alternative to a full purchase. The rent and service charges come out of affordability, reducing what you can borrow and often this means you can't afford the property you want.

    You have to be screened by the local HTB Agent for your area and the Government has a shared ownership affordability calculator you have to pass.

    An experienced mortgage broker should be your first port of call with a copy of your statutory credit files in hand.
    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.
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