deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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quote:
Originally posted by Jay
New build Houses by me in "the point" for anyone who knows it, have increased in value, don't see why new build automatically means your going to lose money?
I'm on there Jay
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Did you get there with hefty deposit MarkM or new build scheme?
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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Put a decent chunk down Deano.
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Jay
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Registered: 26th Sep 04
Location: Liverpool
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quote:
Originally posted by MarkM
quote:
Originally posted by Jay
New build Houses by me in "the point" for anyone who knows it, have increased in value, don't see why new build automatically means your going to lose money?
I'm on there Jay
Boss houses them, I went for the slightly cheaper option, the new houses over the road 
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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Decent them though mate.
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Kyle T
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Registered: 11th Sep 04
Location: Selby, North Yorkshire
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I did a similar scheme in 2008 on my Redrow property. Basically I got a 100% mortgage, with Redrow lending me 15%.
The 15% needed paying off either when I sold up or after 10 years, whichever comes first - and is interest free for that time.
I worked out my budgeting so that I could afford my mortgage payments each month plus putting in enough to cover the 10 year £14.5k loan to Redrow. I did not rely on a remortgage and house price rise to pay it.
I'm now looking to sell up, the property has lost £8k in value since buying it, and since I borrowed 85% and I've since paid off a couple of grand (yay) of the value via mortgage that leaves me £8k in equity... however I owe Redrow £14.5k.
The net result is 6.5k negative equity, so that needs covering before I can even think of "next move" deposits.
We're looking to sell up and square up with Redrow - probably leaving me about 8% of a deposit for a property I'm looking to buy (4 bed, doublegarage, house for life type material). I'm not going to rush into anything so we'll rent for a bit, give us some immediate "relief" in terms of more rooms, space for cars, etc and continue saving and turning that 8% into more like 15-20.
My opinion on the "help to buy" is that even if I could go back in time, I'd still do it again. My freedom and independence at that time was worth £6.5k easily, however it's rarely going to be the financially sensible route to go down, especially as these schemes are first time buyer incentives and FTB houses are rarely "house for life" type purchases.
If you can be sure you can pay off the "help" loan before it becomes an expensive debt, and you're happy with the fact you'll be in negative equity for a few years... go for it.
My loan section was static, so even if my house doubled in value it would still remain £14.5k to pay off. Unfortunately in my case it means it didn't scale down when my house value dropped  Some of these schemes are different though, so even if the market picks up and your property price rises you're still shackled somewhat by the "help".
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Kyle T
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Registered: 11th Sep 04
Location: Selby, North Yorkshire
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saw my thread in 2008 in the "related threads" section below this after posting. How the fuck did I buy this place on 1200 a month after tax, and how the fuck am I not saving up more than I am based on my 2013 income AND my missus' income
My lifestyle must have stunk.
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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I'm £1,400 after tax on my own so I'm alright in your scenario, although you can buy a flat for tuppence oop North.
I think that is what is good about the latest scheme. It's 20% share of market value, repaid when you sell. You can buy back. And only pay minimum interest per which is as a "fee" rather than APR, as far as I'm aware.
If I can I'll be going down the "100% my own" route but will have to do it with a smaller deposit, so negative equity isn't such a massive issue.
[Edited on 08-06-2013 by deano87]
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fred7
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Registered: 17th May 04
Location: Rugeley, Staffordshire
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Ive been and looked T this help to buy off the government giving me 20% on a 3 bed semi house en suite big kitchen and living room 2 parking spaces at the side of the house. . On me putting 5% down the payments would be £580 a month the house price is £160k but a house we can stay in and my daughter can grow up in. Its a brand new area not redeveloping in a small space. Having a meeting tomorrow now and might reserve the last plot.
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fred7
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Registered: 17th May 04
Location: Rugeley, Staffordshire
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Anyone have any idea how much the solicitor fees will be on a new build? The developer said Bout £1k thats everything?
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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Depends on the price of the house but as its purchase only with costs and disbursements I'd say a grand is about right. Generally the builder will recommend a solicitor.
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Cavey
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Registered: 11th Nov 02
Location: Derby
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Ours through the home buy direct scheme was 1.5k or so, because it's more paperwork etc... Dealing with 3 desperate parties essentially.
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fred7
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Registered: 17th May 04
Location: Rugeley, Staffordshire
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Had the mortgage agreed in principle today reserved the house and mortgage advisor coming out on monday so all going ahead. Gone for a 3 story 3 bedrooms the master with an en suite big garden 2 parking spots semi detached. Done a scheme thru the developer so own the house with a seperate loan which is interest free for 10 years. Really happy with it
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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So did you enter a scheme bit with the builder instead of the government Fred/
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Fad
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Registered: 1st Feb 01
Location: Dartford Kent Drives: 330cd
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quote:
Originally posted by AndyKent
Said it before and I'll say it again, any form of input from the government is a way of falsely propping up the property market and in the end lining the pockets of developers.
Want to make houses affordable? Drop asking prices. Simple.
All this help to buy crap is just making houses as expensive as they always were with a thin layer of 'help' laid over the top.
You need a proper deposit, plain and simple. And don't buy a new home from a developer, you'll almost certain go into negative equity for a few years leaving you trapped.
Deano please take note of this, never heard a word truer. I would align the lending along the same principle as student loans which you will forever be paying off. If I am right I would say Andy has a fair bit of insight like myself being in the industry.
The houses are generally overvalued in the first place and this is where it starts.
I would seriously save a bit harder and get a house with a conventional mortgage with a better rate than the first buy or Help to buy rates, perhaps on a longer term to commence to help get you on the ladder then when the introductory rate expires remortgage with some money saved up and amend the term accordingly.
It also makes moving up the ladder a fair bit easier 
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fred7
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Registered: 17th May 04
Location: Rugeley, Staffordshire
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quote:
Originally posted by deano87
So did you enter a scheme bit with the builder instead of the government Fred/
Yes deano. there scheme is interest free for 10 years and nothing to pay for 10 years, can be put on the mortgage at the end or I was thinking set a isa up put £100 a month in for the 10 years and should pay for it self then. will see what happens tho. We have reserved the house and been in contact with the solicitor so and gotta post all forms after the mortgage advisor has been tomorrow.
My interest rate is 3.99% Halifax told me the normal 95% mortgage is a lot more so makes more sense doing it like this especially when its interest free for 10 years the loan off developer
[Edited on 23-06-2013 by fred7]
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Fad
Fred
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fred7
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Registered: 17th May 04
Location: Rugeley, Staffordshire
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Deano have you found anything yet or whats ya plans now?
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Next year with as much deposit as possible. Banking on getting a high-ish LTV with Nationwide for what we want providing the numbers add.
Will be 26 going on 27 so will make a decision on buying or renting what ever!
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fred7
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Registered: 17th May 04
Location: Rugeley, Staffordshire
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Im 27 now so thought it was now or never really been renting for 9 years so needed to happen now.
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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In my experience you can negotiate a hefty reduction on new builds from the builder as each financial quarter ends as they'll want the sale on the books to make their figures look good. The reduction also takes into account the over valuation generally.
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