Match Day Thread 2017/18 Premier League, Cups & Euro Watch

[Zanjinho]

Especially if the house price increases.

Think it works out that you end up paying more loan back and you’re just better off financially in the long run without. Think it only benefits the buyer of the house price drops.

If it's Help to Buy then yes but the house is worth more to you too.

You put 5% in, government provides 20% meaning you need a 75% mortgage.

So for arguments sake, you bought a £100k house. That initial government contribution is £20k and your contribution is £80k; £5k your own money and £75k mortgage

When you come to repay to, it's 20% of the house value at the time of sale. If the house is now worth £200k, you owe the government £40k but only have a £75k (actually less as you've been paying it off) mortgage on the remaining £160k.

The arse comes if the house devalues despite having to pay less than the initial £20k (or 20% equivalent)

Bare in mind, Help to Buy is only available on new builds (like a car, instantly loses money) and the money is supposed to be paid back within 5yrs, otherwise you face interest charges (1st year of interest is quite low but jumps up after that)

 

[Zingy]

If it's Help to Buy then yes but the house is worth more to you too.

You put 5% in, government provides 20% meaning you need a 75% mortgage.

So for arguments sake, you bought a £100k house. That initial government contribution is £20k and your contribution is £80k; £5k your own money and £75k mortgage

When you come to repay to, it's 20% of the house value at the time of sale. If the house is now worth £200k, you owe the government £40k but only have a £75k (actually less as you've been paying it off) mortgage on the remaining £160k.

The arse comes if the house devalues despite having to pay less than the initial £20k (or 20% equivalent)

Bare in mind, Help to Buy is only available on new builds (like a car, instantly loses money) and the money is supposed to be paid back within 5yrs, otherwise you face interest charges (1st year of interest is quite low but jumps up after that)

I can understand how the scheme beneficial for both parties. It’s a leg up for one and fail safe for the other (as long as the price goes up) But the reduced equity and potentially paying back much more than you borrowed makes it not worth it for me, but not many are able to save up more than 5% to get the best mortgage deals and are just better off going for the equity loan to get affordable monthly repayments.

 

[Zanjinho]

I can understand how the scheme beneficial for both parties. It’s a leg up for one and fail safe for the other (as long as the price goes up) But the reduced equity and potentially paying back much more than you borrowed makes it not worth it for me, but not many are able to save up more than 5% to get the best mortgage deals and are just better off going for the equity loan to get affordable monthly repayments.

Is the new build only that kills it imo. Buy a new build new £200k and it'll be worth £170k- £180k the following day. You really need a property boom for it to be beneficial.

As you rightly said though, a lot of people nowadays are able to get that deposit to get on the last initially.

I got fortunate, I was part of a small group that was able to get 100% mortgage to get on the ladder (yes, I had everything crossed was Northern Rock were struggling!!!)

 

[Diego]

Is the new build only that kills it imo. Buy a new build new £200k and it'll be worth £170k- £180k the following day. You really need a property boom for it to be beneficial.

As you rightly said though, a lot of people nowadays are able to get that deposit to get on the last initially.

I got fortunate, I was part of a small group that was able to get 100% mortgage to get on the ladder (yes, I had everything crossed was Northern Rock were struggling!!!)

Most people buy a house for 5-10 years not 1 day. It would only be a problem if you wanted to make a quick profit and didn't actually want somewhere to live (or another 2008 hit )

 

[Zanjinho]

Most people buy a house for 5-10 years not 1 day. It would only be a problem if you wanted to make a quick profit and didn't actually want somewhere to live (or another 2008 hit )

Help to Buy is designed to get people on the property ladder and is expected to be episode within 5yrs. How many people buy a first property and live there for 10yrs?

 

[BobbyD]

Help to Buy is designed to get people on the property ladder and is expected to be episode within 5yrs. How many people buy a first property and live there for 10yrs?

depend how rich and middle class you are. Most people buy just the 1 house. To be fair i wouldn't be opposed to my children sharing a room. What i had to do when i was younger (although that won't happen to me)

 

[Diego]

Help to Buy is designed to get people on the property ladder and is expected to be episode within 5yrs. How many people buy a first property and live there for 10yrs?

Many I would imagine, I lived in my first house for 12 and would have stayed longer if child No3 hadn't come along.

 

[Zanjinho]

depend how rich and middle class you are. Most people buy just the 1 house. To be fair i wouldn't be opposed to my children sharing a room. What i had to do when i was younger (although that won't happen to me)

Of course, although some classes won't see a need for H2B.

I was thinking more of those in need of financial help (hence H2B) buying something they can afford but not ideal should they later wish to start a family. You know, the general life thing.

 

[Zanjinho]

Many I would imagine, I lived in my first house for 12 and would have stayed longer if child No3 hadn't come along.

I was in my first 11yrs but don't know many others that did. I had two bedtimes so needed to move long before I did but simply could not afford to and I didn't have a H2B weight hung around my neck

 

[Zingy]

Is the new build only that kills it imo. Buy a new build new £200k and it'll be worth £170k- £180k the following day. You really need a property boom for it to be beneficial.

As you rightly said though, a lot of people nowadays are able to get that deposit to get on the last initially.

I got fortunate, I was part of a small group that was able to get 100% mortgage to get on the ladder (yes, I had everything crossed was Northern Rock were struggling!!!)

I wouldn’t buy new out of personal preference but yeah that’s a put off! I think the equity loan cusions the blow of price drop as I don’t think you go into negative equity until the price drops below the size of the equity loan? I could be wrong, I’m sure that was one positive of having it in a negative situation.

 

[BobbyD]

Of course, although some classes won't see a need for H2B.

I was thinking more of those in need of financial help (hence H2B) buying something they can afford but not ideal should they later wish to start a family. You know, the general life thing.

lol you just sort of answered your own question to diego when you gave him a smart arse remark i.e. who lives in their first build for 10 years.

Answer, poor people who can't afford to upgrade (sounds like most of the help to buy crowd) and people who don't mind their kids sharing much like yourself fella .

 

[Garlic Klopp]

A mate of mine bought his first house in October 2016, he was living with his mum prior. He only saved up for about 8mths, he also got a 2 bed new build. Guess it depends what part of the country your in though, think he paid the minimum 5% too

My lads done the same deal, government help thing. He is very cautious though so wanted to have a wedge of cash saved for furniture, etc. He also wanted to buy a house, but still maintain his lifestyle and not have to struggle. He is so sensible I often wonder if the Mrs had an affair, I was certainly not like him at that age, any money I got went on booze, holidays and women. The rest I just wasted

 

[Garlic Klopp]

lol you just sort of answered your own question to diego when you gave him a smart arse remark i.e. who lives in their first build for 10 years.

Answer, poor people who can't afford to upgrade (sounds like most of the help to buy crowd) and people who don't mind their kids sharing much like yourself fella .

Getting on the property ladder is the problem for a lot of today's youngsters. When I got married my wife had a two bed house in Fazakerley which I moved into. Within 6 months we had bought a 3 bed new build in Cheshire based on my salary alone. We had the two houses for about 6 months before we sold the Fazakerley one. Very few people could do that now.

With the 5% loan thing, all you do is transfer that to your mortgage in 5 years time as that will be lower than the government rate which is 1.75% above interest rates. My lad is hoping to have saved a chunk of money by then to pay most, if not all, of it off. He could have gone for a bigger house but then would have less money for other things and if rates go up dramatically he would have been struggling. I am sure he will move on in the future as needs be, he may end up living abroad anyway because of his job.

 

[Zingy]

Getting on the property ladder is the problem for a lot of today's youngsters. When I got married my wife had a two bed house in Fazakerley which I moved into. Within 6 months we had bought a 3 bed new build in Cheshire based on my salary alone. We had the two houses for about 6 months before we sold the Fazakerley one. Very few people could do that now.

With the 5% loan thing, all you do is transfer that to your mortgage in 5 years time as that will be lower than the government rate which is 1.75% above interest rates. My lad is hoping to have saved a chunk of money by then to pay most, if not all, of it off. He could have gone for a bigger house but then would have less money for other things and if rates go up dramatically he would have been struggling. I am sure he will move on in the future as needs be, he may end up living abroad anyway because of his job.

What does he do?

 

[Garlic Klopp]

He works for an international recruitment company. He does not do recruitment, but he looks after the companies that act as agents for his company. He is fluent in German, French and Spanish, hence the he has to travel around Europe. Recently he was working 3 days at their office in Telford and two days in Belguim. He has just been promoted so will now only deal with Germany and will have to spend about 7/10 days a month in Germany attending meetings, sometimes he just flies out for the day other times he may be there for a week.

 

[organic red]

Real Madrid could only draw away at Celta Vigo and are hanging on to 4th in La Liga, a massive 16 points behind Barca

 

[astro]

Real Madrid could only draw away at Celta Vigo and are hanging on to 4th in La Liga, a massive 16 points behind Barca

Real are garbage, I [HASHTAG]#calledit[/HASHTAG] back when Spurs beat them

 

[moreinjuredthanowen]

Real are garbage, I [HASHTAG]#calledit[/HASHTAG] back when Spurs beat them

you did.

wonder what they will be like when CL starts. This is first game back after winter break and they are still ****e.

I cannot see them beating PSG this time.

 

[moreinjuredthanowen]

He works for an international recruitment company. He does not do recruitment, but he looks after the companies that act as agents for his company. He is fluent in German, French and Spanish, hence the he has to travel around Europe. Recently he was working 3 days at their office in Telford and two days in Belguim. He has just been promoted so will now only deal with Germany and will have to spend about 7/10 days a month in Germany attending meetings, sometimes he just flies out for the day other times he may be there for a week.

worried about brexit?

YOu must be dead proud of him though. well done garlic.

 

[Zingy]

Why are people talking football on the mortgage thread?