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  • FIRST POST
    • krustylouise
    • By krustylouise 14th May 18, 8:58 PM
    • 1,476Posts
    • 2,614Thanks
    krustylouise
    House buying
    • #1
    • 14th May 18, 8:58 PM
    House buying 14th May 18 at 8:58 PM
    Hi all,

    Its been a long long time since I've posted on here and life has been hectic! My husband and I are hoping to, in the near future, but our own home.

    We are both working full time and earning an okay income. I am self employed and husband is employed.

    We stupidly started looking at houses with a view of keeping our eyes on the market, and have now started feeling impatient and wanting our own house NOW. We are looking at being able to get a mortgage of approximately 170,000. We currently save but we only have 2000. I have a help to buy ISA and hubby has a share save scheme through his work. We save 450 per month but have scope to save more.

    We have a car on finance to pay off, I have a credit card with 1800, a sofa on 0% finance to pay off. Our debt to available credit ratio is approximately 40%.

    We rent and our rent is very low. We have two children and don't pay childcare.

    We have received a lot of advice, some good and some very bad and so thought I would come here to keep us on the straight and narrow!

    We both keep a close eye on our credit scores which seem to be doing well and have slowly increased.

    Any advice and helo if very much appreciated.

    Thanks in advance.
Page 2
    • Nicosy
    • By Nicosy 16th May 18, 11:58 AM
    • 12 Posts
    • 12 Thanks
    Nicosy
    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
    Originally posted by csgohan4
    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.
    • thethirdbar
    • By thethirdbar 16th May 18, 12:54 PM
    • 28 Posts
    • 29 Thanks
    thethirdbar
    95% mortgages not on help-to-buy are an option too, that's what my husband I are doing. The interest rates are higher with a higher LTV but the mortgage payments + 10% overpayment will still be less than the rent we are currently paying so it makes sense for us rather than waiting another year to get to 10%. Then we'll hopefully remortgage to a lower LTV at the end of our initial fixed-rate term (although with how long it is actually taking us to buy a house we might end up being able to do 10% after all).

    Admittedly we are looking at houses around the 100k mark so a good bit cheaper than yours. We've been saving for around a year at the same time as paying off a fixed-term loan & some other credit card debt. We each pay in 200 per mth to our ISAs and then round up any 'spare' cash at the end of the month into a regular saver / onto the credit card. We currently have around 9k saved + our H2B ISA bonuses and will be debt-free (mortgage aside !) when the loan is paid off at the end of August.

    My biggest advice would be:

    - make sure you check your credit reports with all three CRAs regularly - I checked mine religiously with MSE's Credit Club but then when we were applying for our DIP we discovered a default on my file with Noddle which was a bit of a stress.

    - really get on top of your spending - we sit down together every week and update our budget / cashflow with all our incomings and outgoings so we know exactly what we're spending and what we have available to us. As suggested earlier in the thread the debt-free wannabe boards are a really good resource full of helpful people who can assist with this bit if needed.

    As long as you're strict with your budgeting and account for every penny though you will be surprised at how quickly you can build up savings if you really make it your focus. Whenever i look at our balances i am very proud of how far we've come since a year ago when i decided i wanted to buy a house!

    good luck
    Last edited by thethirdbar; 16-05-2018 at 12:57 PM.
    • Grezz24
    • By Grezz24 16th May 18, 4:24 PM
    • 187 Posts
    • 222 Thanks
    Grezz24
    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.
    Originally posted by Nicosy
    i dont see it as a scam personally. it helps people get onto the property ladder with a good APR for a mortgage. Yes the govt own 20% of the home but its interest free for 5 year and then you only pay back the interest.

    But in that 5 years you can carry on saving and then buy the 20% stake out if needed.
    • csgohan4
    • By csgohan4 16th May 18, 8:57 PM
    • 5,189 Posts
    • 3,308 Thanks
    csgohan4
    i dont see it as a scam personally. it helps people get onto the property ladder with a good APR for a mortgage. Yes the govt own 20% of the home but its interest free for 5 year and then you only pay back the interest.

    But in that 5 years you can carry on saving and then buy the 20% stake out if needed.
    Originally posted by Grezz24


    Your forgetting the overpriced new builds which drop in value as soon as you walk through the door in some cases
    "It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
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