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Lrb
Posts: 17 Forumite
Ive a couple of questions relating to buying a first home.
Ive looked at both shared ownership and help to buy.
One question I cant seem to find an answer on is this. With help to buy, after the mortgage is paid, is the government loan payable all at once or is it paid over time somehow ? Im aware another mortgage could be taken out for this but was wondering if not then is it all payable as a lump sum ?
We cant yet decide on which scheme would be best for us. We have a low deposit so really cant get a standard mortgage unless we save for a few more years and im 48 so my options are getting limited.
The shared ownership scheme would mean we could possibly get about 45% share and save for buying future shares.
Could do with some real advice on both schemes and which one people would recommend.
Thank you
Ive looked at both shared ownership and help to buy.
One question I cant seem to find an answer on is this. With help to buy, after the mortgage is paid, is the government loan payable all at once or is it paid over time somehow ? Im aware another mortgage could be taken out for this but was wondering if not then is it all payable as a lump sum ?
We cant yet decide on which scheme would be best for us. We have a low deposit so really cant get a standard mortgage unless we save for a few more years and im 48 so my options are getting limited.
The shared ownership scheme would mean we could possibly get about 45% share and save for buying future shares.
Could do with some real advice on both schemes and which one people would recommend.
Thank you
0
Comments
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You can only pay the help to buy in 10% blocks or full , each time will cost you about 1500 in chargesDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Thank you
So if We didnt pay anything back, apart from the interest obviously, when the mortgage came to an end we would have to pay all the government loan back in one lump sum ?0 -
Yes Homes England would take their equity share as a lump sum when you sell. As an example if you have a 20% Help to Buy loan they would take 20% of the house value when you sell which may be more than the 20% you borrowed in the first instance0
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I think the big problem with these is if the value of the house shoots up the amount you need to find to gain full ownership will also shoot up.0
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I understand if i was to sell then the same % of the then value would be payable back.
If i wasnt to sell i would be then left with a large amount to pay back all at once.
Whats peoples views on shared ownership ?0 -
I understand if i was to sell then the same % of the then value would be payable back.
If i wasnt to sell i would be then left with a large amount to pay back all at once.
Whats peoples views on shared ownership ?
https://www.moneyadviceservice.org.uk/en/articles/shared-ownership-housing-schemes-explained
OP have a search on the forum for SO and you will see the pitfalls
here's a few to start you off
https://forums.moneysavingexpert.com/showthread.php?t=5987420
https://forums.moneysavingexpert.com/showthread.php?t=5969284
https://forums.moneysavingexpert.com/showthread.php?t=5928753
https://forums.moneysavingexpert.com/showthread.php?t=5901060"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
I have a part rent /part buy and I own 55% but I would not recommend it to anyone as the housing assoc I am involved in wont do anything apart from collecting the rent as they treat it as you own the house outright and wont help with any repairs you may think they may be responsible for as I have found out to my cost sadly .. and God help you if you decide to sell the shared ownership part in the future as they are worst than useless. I hope this helps0
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If I remember rightly there was a court case that held that "shared ownership" was in reality a type of rental. The tenant, being a tenant, was evicted when they were unable to pay the rent, and had no legal right to any money back from the share they ostensibly "owned". (Though the landlord repaid it anyway).
It may not be the case for all shared ownership schemes but it's enough to make me deeply sceptical.0 -
You will pay about £50 a month if you don't pay the loan off in year 6Don't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Both are very bad in the long term and will cost you alot more money than standard ownership, there is horror story's on the forums about both, shared ownership where if anything happens to the property then you have to pay fully for it and the shared ownership company gets all the benefits and profit0
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