Soldato
I’m looking to buy a house. However we can’t decide on location and I’m a bit worried about spending lot of money only then to find that we don’t like the area.
Today I thought about buying a 2 bed flat instead. We currently live right outside the city centre in not so good an area, but it’s alright and we’ve had no problems in 3 years we’ve lived here. I could buy a flat in the same development as we’re currently renting for anywhere between 70k and 80k.
I have a bit over 25% deposit. Would I still be able to get 20% from Help to Buy? Am I right that this scheme can be now used on ‘old’ properties? Looking online I can’t find definite answer. I will be going to see financial advisor later this week.
My thinking is that with a mortgage of 40k or so we will be able to repay the Help to Buy loan in 5 years, while it is interest free, and also repay the mortgage shortly after. Which means within a few years I could own an asset worth approx. 80k or more if the prices go up. These flats were selling for over 100k before recession.
Monthly repayment would be almost £200 cheaper (10 years term) than our current rent so even with paying service charge we’d still be saving money. I know as a homeowner there will be extra costs, but value of these flats is way below our budget, so I don’t see a problem repaying both the loan and mortgage early.
Today I thought about buying a 2 bed flat instead. We currently live right outside the city centre in not so good an area, but it’s alright and we’ve had no problems in 3 years we’ve lived here. I could buy a flat in the same development as we’re currently renting for anywhere between 70k and 80k.
I have a bit over 25% deposit. Would I still be able to get 20% from Help to Buy? Am I right that this scheme can be now used on ‘old’ properties? Looking online I can’t find definite answer. I will be going to see financial advisor later this week.
My thinking is that with a mortgage of 40k or so we will be able to repay the Help to Buy loan in 5 years, while it is interest free, and also repay the mortgage shortly after. Which means within a few years I could own an asset worth approx. 80k or more if the prices go up. These flats were selling for over 100k before recession.
Monthly repayment would be almost £200 cheaper (10 years term) than our current rent so even with paying service charge we’d still be saving money. I know as a homeowner there will be extra costs, but value of these flats is way below our budget, so I don’t see a problem repaying both the loan and mortgage early.
