dont_do_it_doug. Posted November 29, 2014 Share Posted November 29, 2014 Has anyone had experience using this scheme? Allegedly, the government will put 20% towards a first home, which you then pay back to them at a low interest rate only needing to put 5% in yourself. You're then only due 75% to the bank. Allegedly. Don't know anyone who had used this in practice and what kind of stipulations there are. Link to comment Share on other sites More sharing options...
Dodgyknees Posted November 29, 2014 Share Posted November 29, 2014 We thought about it. The problem was you had to choose certain properties, under certain conditions. In the end we found another way. 1 Link to comment Share on other sites More sharing options...
villarule123 Posted November 29, 2014 VT Supporter Share Posted November 29, 2014 The loan is interest only and you pay the 20% back at the end of the 25 years. Also, if your house value goes up then so does the figure you owe the government. 2 Link to comment Share on other sites More sharing options...
dont_do_it_doug. Posted November 29, 2014 Author Share Posted November 29, 2014 The loan is interest only and you pay the 20% back at the end of the 25 years. Also, if your house value goes up then so does the figure you owe the government. End thread. Cheers for crushing my dreams! Link to comment Share on other sites More sharing options...
dont_do_it_doug. Posted November 29, 2014 Author Share Posted November 29, 2014 We thought about it. The problem was you had to choose certain properties, under certain conditions. In the end we found another way. Which other way? I don't think I'll have a problem getting the mortgage, but not for the amount I really want. I don't mean to brag, but the monthly payments won't be an issue, it's just that a lot of my reddies are tied up in the business. Bonuses etc. So I know the banks are going to be awkward. I could save a bigger deposit, but that takes time of course and I feel like now is the time to act. Link to comment Share on other sites More sharing options...
villarule123 Posted November 29, 2014 VT Supporter Share Posted November 29, 2014 The loan is interest only and you pay the 20% back at the end of the 25 years. Also, if your house value goes up then so does the figure you owe the government. End thread. Cheers for crushing my dreams! That is what the woman said when I phoned them anyway. I thought that you would pay it back over the 25 years, like you would with a mortgage. We were thinking of taking the 20%, putting our 20% down and having a 60% equity on our mortgage, but as soon as she said that it was a big no no. Link to comment Share on other sites More sharing options...
PompeyVillan Posted November 29, 2014 Share Posted November 29, 2014 We've got a 95% mortgage.http://www.helptobuy.org.uk/mortgage-guarantee/how-does-it-work'> http://www.helptobuy.org.uk/mortgage-guarantee/how-does-it-work Link to comment Share on other sites More sharing options...
dont_do_it_doug. Posted November 29, 2014 Author Share Posted November 29, 2014 We've got a 95% mortgage. http://www.helptobuy.org.uk/mortgage-guarantee/how-does-it-work'> http://www.helptobuy.org.uk/mortgage-guarantee/how-does-it-work I see that and yet I don't truly understand it! Link to comment Share on other sites More sharing options...
PompeyVillan Posted November 29, 2014 Share Posted November 29, 2014 Well there are two htb schemes. One in which you have a 5% deposit and get a 15% loan from the government and have to pay interest on after 5 years. The second newer option that we have has no loan, it's essentially a 95% mortgage and the government will insure the 15% that would make up the deposit to 20%. As the consumer its better because you do not have a loan and therefore no interest after 5 years. Lenders are quite picky so make sure you check your experian report. Even if you have good income you will be rejected if your credit score isn't good. Link to comment Share on other sites More sharing options...
dont_do_it_doug. Posted November 29, 2014 Author Share Posted November 29, 2014 Well there are two htb schemes. One in which you have a 5% deposit and get a 15% loan from the government and have to pay interest on after 5 years. The second newer option that we have has no loan, it's essentially a 95% mortgage and the government will insure the 15% that would make up the deposit to 20%. As the consumer its better because you do not have a loan and therefore no interest after 5 years. Lenders are quite picky so make sure you check your experian report. Even if you have good income you will be rejected if your credit score isn't good. Ah, now that's more like it. Thanks. If I understand you correctly the government simply act as a guarantor? Where did you go to arrange that? Last time I checked my credit score was in the 800's. Link to comment Share on other sites More sharing options...
PompeyVillan Posted November 29, 2014 Share Posted November 29, 2014 You apply directly through the lender. We paid a financial advisor to find our mortgage, although it was a few hundred £ he was able to scour the whole market for the best deal. Didn't pay him until completion. 1 Link to comment Share on other sites More sharing options...
peterms Posted November 29, 2014 Share Posted November 29, 2014 The proper name for the scheme is "Help to Sell Crappy Newbuild That You Can't Flog Otherwise (public subsidies for Tory donors, sssh) Hope that helps. 2 Link to comment Share on other sites More sharing options...
dont_do_it_doug. Posted November 30, 2014 Author Share Posted November 30, 2014 The proper name for the scheme is "Help to Sell Crappy Newbuild That You Can't Flog Otherwise (public subsidies for Tory donors, sssh) Hope that helps. This one isn't for new builds, or at least I don't think so. I'd never touch a new build. I'd rather bolitics stayed out of this one to be fair! 1 Link to comment Share on other sites More sharing options...
PompeyVillan Posted November 30, 2014 Share Posted November 30, 2014 Ours is a beautiful Victorian end of terrace. The first scheme was intended for new builds I think. I think there is no obligation for lenders to offer 95% mortgages so they offer them when they fancy it and for a limited time. I'm no expert though so don't take my word as gospel! Link to comment Share on other sites More sharing options...
omariqy Posted November 30, 2014 Share Posted November 30, 2014 If you don't mind me asking what was the interest rate like? Link to comment Share on other sites More sharing options...
snowychap Posted November 30, 2014 Share Posted November 30, 2014 I'd rather bolitics stayed out of this one to be fair!In which case ask the government to stay out of it.If the government get involved then 'bolitics' is, too. Link to comment Share on other sites More sharing options...
ismail-villa Posted November 30, 2014 Share Posted November 30, 2014 This is why I wish sixth form would teach us about these things because I haven't a clue as to what is being said here. 1 Link to comment Share on other sites More sharing options...
NurembergVillan Posted November 30, 2014 Moderator Share Posted November 30, 2014 True Ismail. I went to a good school and have thus far had a good career but I'm constantly baffled by things like this. It's almost as if the government are in control of what we learn and WANT it this way. Oh... 2 Link to comment Share on other sites More sharing options...
Wainy316 Posted November 30, 2014 Share Posted November 30, 2014 We bought our flat on help to buy. I don't even know anything about the finer details, it was just a cheap deposit. Maybe I'll get the missus to sit me down and go through it. Link to comment Share on other sites More sharing options...
snowychap Posted December 1, 2014 Share Posted December 1, 2014 This is why I wish sixth form would teach us about these things because I haven't a clue as to what is being said here.Too late for all of us but I think they've stuck something about it in the national curriculum now thanks to a campaign from Martin Lewis (he of the moneysavingexpert 'fame'). He appears, however, to be of the mind that there ought to be a whole lot more and is still campaigning for that, I think. Link to comment Share on other sites More sharing options...
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