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[tunnie]

Does anyone have any experience of these?

Been looking at them, and it looks good, much better than shared ownership.

From what i understand the government plan will lend you up to 50% of the house value (usually its 30%) as a deposit.

So if the house is 160k they lend you 75k as a deposit, you have a 75k mortgage, and a good rate because the lender got a 50% deposit.

Now you have to pay back the 75k, but its on inflation rate only (like my student loan, so it would be around £72 a month) if the house goes up in value, the amount you have to pay back stays the same (unlike shared ownership)

So if the house price goes up to 200k, you still only need to pay back the 75k

I could be quite tempted by this, as the money i have saved for a deposit could be put towards kitting the house out, rather than using it as a deposit!

[Marks DTM Calib]

Read the small print.



And paying 75 quid a month will never clear a 75K mortgage even if the interst rate is low (ish)

[tunnie]

the 75 quid though is on the loan part, i would be paying 600/700 on the mortgage part?

[Marks DTM Calib]

Yes and 75 quid per month would take 1000 installments to pay 75K back ignoring interest!

[TheBoy]

the 75 quid though is on the loan part, i would be paying 600/700 on the mortgage part?

Its paying off the government half....

[tunnie]

well then i am stuffed. how the fek do people afford houses?

I am getting paid close to 40k, and i still can't feking afford it!  

[Marks DTM Calib]

As an example.....the paying of the government loan part would be about the same (if not more) than the mortgage as inflation is much higher than the base rates at the moment!

But I suspect that your 75K mortgage quote is high

[tunnie]

As an example.....the paying of the government loan part would be about the same (if not more) than the mortgage as inflation is much higher than the base rates at the moment!

But I suspect that your 75K mortgage quote is high

The trouble is getting the mortgage down to a rate i can afford, i don't want to live in London, but i still have to commute there, and that costs the best part of £600 a month, so i can realistically only afford 100k mortgage.  

If i use my savings as deposit, i have nothing left to do the house up with!

[Taxi_Driver]

As an example.....the paying of the government loan part would be about the same (if not more) than the mortgage as inflation is much higher than the base rates at the moment!

But I suspect that your 75K mortgage quote is high

The trouble is getting the mortgage down to a rate i can afford, i don't want to live in London, but i still have to commute there, and that costs the best part of £600 a month, so i can realistically only afford 100k mortgage.  

If i use my savings as deposit, i have nothing left to do the house up with!

Thats what used to happen tunnie......im sure many of us were skint after buying our first home....i was....you just did up the home as and when you could afford to  
In fact I even still lived with my parents for several months after i bought my first house and used to go to the house straight from work every evening to decorate/etc and get back to my parents house about 10/11pm.

[HolyCount]

well then i am stuffed. how the fek do people afford houses?

I am getting paid close to 40k, and i still can't feking afford it!  

This is one of the biggest thorns in the side of the housing market ... back in the day when lenders offered around 2.5 times your salary as a mortgage, it would get you a decent property ........ these days the average house price is something in the order of 6.5 times the average salary .... yet ( if you could get it) the sort of loans still equate to less than half of what you need.

[tunnie]

As an example.....the paying of the government loan part would be about the same (if not more) than the mortgage as inflation is much higher than the base rates at the moment!

But I suspect that your 75K mortgage quote is high

The trouble is getting the mortgage down to a rate i can afford, i don't want to live in London, but i still have to commute there, and that costs the best part of £600 a month, so i can realistically only afford 100k mortgage.  

If i use my savings as deposit, i have nothing left to do the house up with!

Thats what used to happen tunnie......im sure many of us were skint after buying our first home....i was....you just did up the home as and when you could afford to  
In fact I even still lived with my parents for several months after i bought my first house and used to go to the house straight from work every evening to decorate/etc and get back to my parents house about 10/11pm.

Yeh thats what i want to do, buy something thats a bit shabby, and do it up at weekends. Seen a few houses which are mortgage repos and can just see me doing that, nothing major like new walls or anything, just new carpets and kitchen, redecorating. But that still needs a good £10k or so!

[tunnie]

well then i am stuffed. how the fek do people afford houses?

I am getting paid close to 40k, and i still can't feking afford it!  

This is one of the biggest thorns in the side of the housing market ... back in the day when lenders offered around 2.5 times your salary as a mortgage, it would get you a decent property ........ these days the average house price is something in the order of 6.5 times the average salary .... yet ( if you could get it) the sort of loans still equate to less than half of what you need.

It makes me laugh reading the London paper on the tube. Big titles like 'PRICES SLASHED' read on.. and its still about 210k for a 1 bed flat!  

[Martin_1962]

well then i am stuffed. how the fek do people afford houses?

I am getting paid close to 40k, and i still can't feking afford it!  

Plenty for a house then!

You should be able to afford up to £1000 a month on that

[Martin_1962]

That said my house cost 75 and is worth over 130 now

[tunnie]

well then i am stuffed. how the fek do people afford houses?

I am getting paid close to 40k, and i still can't feking afford it!  

Plenty for a house then!

You should be able to afford up to £1000 a month on that

Yep i can..

Problem is that tops out at around 130k house price wise.

Which is practically useless around here.