The UK's independent property information site

Go Back   Home Move: property forum > Property Forums > Mortgages

Mortgages Discussions on choosing a mortgages and mortgage options available.

LinkBack Thread Tools
  #1 (permalink)  
Old 01-03-2017, 12:20 AM
Junior Member
Join Date: Feb 2017
Posts: 1
Question 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:

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!
Reply With Quote

firsttimebuyer, helptobuy, mortgage

Thread Tools

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are On
Pingbacks are On
Refbacks are Off


» Property Boards
Buying Property Selling Property Estate Agents Solicitors & Legal Builders & Developments
Property Development Home Improvements Buying Property Abroad

All times are GMT +1. The time now is 09:37 AM.

Powered by vBulletin® Version 3.8.7
Copyright ©2000 - 2017, vBulletin Solutions, Inc.
Content Relevant URLs by vBSEO 3.6.0 PL2 ©2011, Crawlability, Inc.

Important Notice: does not provide professional advice on any aspect of buying, selling, developing or investing property. All posts are provided as lay opinions and not personal professional guidance. You should always seek a qualified professional for professional advice in relation to your personal circumstances. The forums are not monitored, and the site administrators cannot be held liable for the content of the forum. If you have any objection to any post on the forums, please either use the Report Post feature, or else Contact Us to ensure such content is properly dealt with. We are not responsible for third party links on the site.