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Scramz

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  1. Scramz

    Help to buy colleague

    To note, the 25 year repayment period is extended to 35 years if you have a 35 year mortgage. The repayment interest it set from the amount you very first take out, not 20% of the value at the present. With slowly the interest will build, no doubt the £80 a month interest will likely hit about £100 a month by year 25. It looks like it's going to trickle up very slowly.
  2. Scramz

    First HTB fees due next month

    I don't lol. This was true a few years ago but when you now look at most new build sites and compare to older houses in the area, it's on par.
  3. Scramz

    First HTB fees due next month

    You are correct. The house will be revalued at the time you want to pay back and you can only pay back more than 10% of the property value, meaning your second payment would wipe your loan. Min 1 payment or max 2. Most people I would think would save and staircase into the mortgage by year 5. Pay half in cash and half into the mortgage. Or all into mortgage, however it works out best, then you would never pay the 1.75% interest.
  4. Scramz

    First HTB fees due next month

    Maybe it was to boost to house builders, but these properties still sell on the 2nd hand market without an HTB loan after the original buyer used HTB. Don't forgot HTB is not available on every new build property, it's only selected properties on a single site. Mainly ones not sold within 6 months on build start. If anything, HTB is more of a headache in terms on paper work and terms than non HTB. That's why you don't tend to get 'deals' if HTB is involved but you do get deals without it, on the same property. HTB is a hand out it builders and put upwards pressure on prices, but tbh, when you work it all out, it's a good deal for the buyers taking advantage of it. Low rates, etc. The only real concern is if house prices fall, but even then you would be in a better position than someone recently buying a older property without HTB without the GOV loan buffer.
  5. Scramz

    First HTB fees due next month

    Yes, the loan equals 20% of the value of your property regardless of property price. Not the figure you borrowed, the %.
  6. Scramz

    First HTB fees due next month

    It's rigged if the GOV push up prices knowing they will make money from HTB when the buyers decide to sell the house, which they are. It's a free market, but with influences.
  7. Scramz

    First HTB fees due next month

    To add, the property is 100% fully in person's name who purchased the property, HTB is just a GOV loan, like a mortgage.
  8. Scramz

    First HTB fees due next month

    At the point of sale or repayment of loan, the property has to be valued by 3 RICS persons, I beleive. Not a representative of HTB. Tbh it seems grey, but it's not. I sat with a solicitor and went into detail in regards to HTB, he was in favour of, if people need to buy before a possible drop in house prices then HTB would be the way to go as the GOV will share the hit, allowing a 25% fall before effecting you when it comes to remortgaging, which is a good point.
  9. Scramz

    First HTB fees due next month

    Its a variable loan tied to the market value of the property. If the market drops 20%, then your loan decreases by 20% and you can pay your loan off at that point which would be less than borrowed. However, to date and posted in a previous thread, the GOV have made millions£ from increasing property prices and people selling on their HTB homes.
  10. Scramz

    First HTB fees due next month

    You can sell you HTB house at any time, its not at the discretion of the HTB agents. If it turns out to be true then this WILL be another PPI .
  11. Scramz

    How Long...

    I agree. But you wont get a shed for £600 a month 15 miles outside of London now, let alone £2-300.
  12. Scramz

    How Long...

    What research People predicting drops look far to into it and over complicate it. The average Joe is simple, all they want to know is whats going to leave them with more money in there pocket at the end of each month. They don't care about 40 years time. There is so many of them, therefore there will always be buyers. You would require a much larger deposit too.... I don't personally believe there is wayyy more demand than supply, the supply is there but just people are renting them. BTL bails, the renters buy them. Will to cause a big drop? Most likely not.
  13. Scramz

    How Long...

    What do you get for £500-600 where you are 15 miles outside of London? Or you rent free?
  14. Scramz

    How Long...

    I guess you don't live in the south of England. Renting a 3 bed house puts you back over £1k. A mortgage would be cheaper. People don't have a choice but to pay it. It's not about total to pay back it's about how much they can afford each month. The decision comes down to renting and don't see the money again or buy and sell up in 20-30 years and get money back, if needed. In south over 25 years, £1k a month for a roof. £300k on rent or £300k towards a mortgage over them 25 years. As I said above, for most thats the only options to get a roof over head now days. It's not right but that's what it's come to.
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