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  • FIRST POST
    • randomgal
    • By randomgal 17th Apr 18, 8:05 PM
    • 18Posts
    • 5Thanks
    randomgal
    To help to buy or not?
    • #1
    • 17th Apr 18, 8:05 PM
    To help to buy or not? 17th Apr 18 at 8:05 PM
    Not sure I'm on the best forum but here goes.... So, we've saved up enough for a 5% deposit for our first home and we know the area we'd like to buy. What concerns us is that with help to buy 3 bed houses start 400k but if we bought on the open market older properties are around 350k (with better sized rooms!) but monthly mortgage payments are significantly more due to it being a 95% mortgage and it would be a stretch.

    Is help to buy worth it when the properties are significantly more than those on the open market? What attracts us are the initial lower mortgage payments however it feels like the properties are overpriced. Is it best to suffer now and start off with higher mortgage payments or go with help to buy have a comfortable mortgage payment? It's a difference of 600 per month on average
Page 1
    • dimbo61
    • By dimbo61 17th Apr 18, 11:26 PM
    • 10,023 Posts
    • 5,405 Thanks
    dimbo61
    • #2
    • 17th Apr 18, 11:26 PM
    • #2
    • 17th Apr 18, 11:26 PM
    Using Help to Buy means buying a new build property.
    Brand new kitchen, bathroom and new heating system, maybe en suite bathroom and nice double glazing.
    Modern insulation and LED sightings to save money.
    However like a new car they tend to lose money once you have owned it for a few months or years.
    Buying an older property maybe cheaper but it may need maintenance, New roof or boiler.
    HTB will only delay paying that 95 percent mortgage for 5 years.
    Last edited by dimbo61; 20-04-2018 at 1:10 PM.
    • ric1982
    • By ric1982 18th Apr 18, 7:22 AM
    • 187 Posts
    • 30 Thanks
    ric1982
    • #3
    • 18th Apr 18, 7:22 AM
    • #3
    • 18th Apr 18, 7:22 AM
    No.

    Its a scam (if I am allowed to say so). To help builders to sell their merchandise at 20% higher rate. You are not being helped but govt. is helping themself to 20% of your property. That is becouse when you sell they get the profit from the transaction. (Most UK prop. price goes up in short term and in long term all properties prices go up.)

    If they are so concern about FTB why not implement this scheme to the old house sale as well!!?
    • Katapolt
    • By Katapolt 18th Apr 18, 9:02 AM
    • 231 Posts
    • 287 Thanks
    Katapolt
    • #4
    • 18th Apr 18, 9:02 AM
    • #4
    • 18th Apr 18, 9:02 AM
    i was always told to look at it like you arent really getting a discount of 20%, because youll have the mortgage, and the HTB loan to pay back anyway.

    May be wrong but a broker told me if you cant afford the house at a 95% mortgage, with or without HTB, then you shouldn't be getting it.
    Last edited by Katapolt; 18-04-2018 at 10:13 AM.
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