House buying

Grezz24 · 15 May 2018 at 11:02AM

Some doomsayers on here.

Firstly if you go help to buy on a new build you only need 5% deposit, not 10%.
secondly you dont pay stamp duty under a certain value for a first home

so what was told as £20,000 is now actually £8500 (5%) as there are many free free brokers out there.

When applying for a mortgage the lender looks at your total incoming per month(say £2000 as an example) and total outgoing (including couch and car etc) and say you are left with £1000 left then they work on affordability if the rates rise etc to see if you can afford the price.

many people have credit cards and agreements in place and still get a mortgage. I would post this on the mortgage and endowments page and get advice from the brokers on there they are very helpful.

Grezz24 · 15 May 2018 at 11:05AM

also a point to add we are looking at new builds now and we have £7000 saved and need about £11000 for our deposit, but the new build we are after isnt ready until early next year so we are potentially about to reserve it - knowing our deposit will be there for when its ready to complete.

if we had started to look when we had the full5% we would have been waiting several months for the n next batch of homes to be released.

Nicosy · 15 May 2018 at 11:51AM

I assume you're a first time buyer? Not considering stamp duty isn't too bad in that case as the 2017 Budget brought in new rules for first-time buyers that are supposed to help more people get onto the property ladder by reducing the amount of stamp duty you’ll pay if you spend less than £500,000 on a property. If you spend less than £300,000 on your property, you’ll pay ZERO stamp duty.

So long as you’ve never owned any property, anywhere, any time, you’re ok.

ReadingTim · 15 May 2018 at 12:12PM

Grezz24 wrote: »

Some doomsayers on here.

Firstly if you go help to buy on a new build you only need 5% deposit, not 10%.
secondly you dont pay stamp duty under a certain value for a first home

so what was told as £20,000 is now actually £8500 (5%) as there are many free free brokers out there.

£8,500 at £450 per month is still a year and a half. Obviously not as long as the 3-4 years previously mentioned, but hardly tomorrow, or really any time "in the near future" either.

krustylouise · 15 May 2018 at 12:55PM

Grezz24 wrote: »

Some doomsayers on here.

Firstly if you go help to buy on a new build you only need 5% deposit, not 10%.
secondly you dont pay stamp duty under a certain value for a first home

so what was told as £20,000 is now actually £8500 (5%) as there are many free free brokers out there.

When applying for a mortgage the lender looks at your total incoming per month(say £2000 as an example) and total outgoing (including couch and car etc) and say you are left with £1000 left then they work on affordability if the rates rise etc to see if you can afford the price.

many people have credit cards and agreements in place and still get a mortgage. I would post this on the mortgage and endowments page and get advice from the brokers on there they are very helpful.

Thank you so much. After being on here this morning I felt very down hearted. We have spoken to a broker, in fact two. One seems a lot more professional than the other so we will be working with him when the time comes I suspect. I will pop over to the other thread- thanks again.

krustylouise · 15 May 2018 at 12:56PM

ReadingTim wrote: »

£8,500 at £450 per month is still a year and a half. Obviously not as long as the 3-4 years previously mentioned, but hardly tomorrow, or really any time "in the near future" either.

I guess people views on timeframes is all subjective isn't it? My near future (as in a year or so is much different to meaning now. Thanks for your advice though.

csgohan4 · 16 May 2018 at 7:21AM

Grezz24 wrote: »

Some doomsayers on here.

Firstly if you go help to buy on a new build you only need 5% deposit, not 10%.
secondly you dont pay stamp duty under a certain value for a first home

so what was told as £20,000 is now actually £8500 (5%) as there are many free free brokers out there.

When applying for a mortgage the lender looks at your total incoming per month(say £2000 as an example) and total outgoing (including couch and car etc) and say you are left with £1000 left then they work on affordability if the rates rise etc to see if you can afford the price.

many people have credit cards and agreements in place and still get a mortgage. I would post this on the mortgage and endowments page and get advice from the brokers on there they are very helpful.

HTB has it's own problems, you must pay back the loan after 5 years or accrue interest. You will usually pay back more than you borrowed due to increase in house prices. It's a scam imho, kicking the can down the road, also it's not available with every house/flat it has criteria

MERFE · 16 May 2018 at 8:14AM

Try not to get too disheartened, you have a goal and are working towards it. I started in a similar position to you about a year ago only with more debt. At first we concentrated on paying off the debt but since it was all 0% we now save whilst repaying. We have £1700 left to pay on the credit card and £7000 saved so far. We will be looking to buy at the end of the year or possibly save further, house prices here are not rapidly increasing but suitable houses only pop up every now and again so we will continue to save until the right house is available. Don't lose your focus and every month you will get a little closer to that goal.

hazyjo · 16 May 2018 at 9:48AM

MERFE wrote: »

At first we concentrated on paying off the debt but since it was all 0% we now save whilst repaying. We have £1700 left to pay on the credit card and £7000 saved so far.

How much do you pay in interest each month on the credit card now? (Or maybe I'm mis-reading and you mean you 'is' 0%, not 'was'? If zero, ignore the line below!)

I really don't get it. Surely you'd be better off clearing the credit card and having £5,300 in savings :think:

Nicosy · 16 May 2018 at 11:58AM

csgohan4 wrote: »

HTB has it's own problems, you must pay back the loan after 5 years or accrue interest. You will usually pay back more than you borrowed due to increase in house prices. It's a scam imho, kicking the can down the road, also it's not available with every house/flat it has criteria

I agree re HtB potentially being a scam, can easily see headlines down the line about borrowers who reached too far and then hit by interest payments after 5ys, caveat emptor I guess. It was more to spur investment in new builds than a genuine borrower subsidy after all.

Company called Property Pact seem to be trying to create a P2P version, see how that goes.

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