Welcome to the reallymoving forum
Got questions and need some advice? Our forums have answers on everything from choosing the right property, to renting and selling.
  • If this is your first visit, be sure to check out the FAQ by clicking the link above. You may have to register before you can post: click the register link above to proceed. To start viewing messages, select the forum that you want to visit from the selection below.

Announcement

Collapse
No announcement yet.

Help to Buy Mortgage London

Collapse
X
  • Filter
  • Time
  • Show
Clear All
new posts

  • Help to Buy Mortgage London

    Hi All,

    First time buyer here desperately needing some advice on the help to buy scheme among other things.

    My stats:

    Age:30
    Salary:42k
    Deposit:37k
    Help to Buy ISA:3k
    Other savings for associated fees:£7k
    Mortgage agreement in principle: £345k, 38 years, min deposit 47k (this agreement was given to me last august when i was earning 40k per year)
    Affordability: 345k with Help to Buy and 230k without Help to Buy.

    I live in North London and have always wanted to stay in north London. I unfortunately still live with my parents . I have been looking for over 5 years but every time i find a flat im told by an advisor i cant afford it and i should save up for a bigger deposit but as soon as i do house prices increase also and im back to square one!

    The Help to Buy option seems the only way for me to stay in Enfield or Barnet and live in a decent 1 bed flat with parking. I have seen a flat over the weekend for 350k, £1,500 service charge and £250 Ground Rent. Amazing looking flat everything brand new with a high spec on all appliances and materials/finishes. I really want to bid but im taken aback since i have been reading up on opinions of the mortgage by economists and financial advisers who all agree the Help To Buy mortgage is a con and will put people into more debt after the 5 year interest free period also could cause the financial bubble to burst! Furthermore, i have read 95% of Help to Buy mortgages have been taken outside of London. Only 7,500 Help to Buy mortgages have been taken out in London. Also The estate agent who i saw on Saturday told me she had 30 people to view the block of 15 flats that i viewed yet when i asked her today has anybody had put an offer for any 2 of the 1 bed flats she said no! Shouldnt these flats be getting snapped up?

    My plan was to take a Help to buy mortgage and sell the flat before the interest free 5 year period is up and then buy a flat with a normal mortgage.


    Buying the Flat

    Flat price 350k
    40% HtB Loan @ 140k
    40k Deposit
    170k Mortgage

    Selling the Flat in the 4th or 5th year (estimation)

    Flat Price 375k
    40% HtB Loan @ 150k (pay back in one lump sum)
    225k (retain)

    Im just wondering if everyone knows something i dont and that i may be making the biggest mistake of my life by going ahead with a Help to Buy mortgage! I mean it seems very good so why arent more people taking it? Do you think i can afford it? I was trying to get a 3 year fixed rate also.

    H E L P!
Working...
X