Not looking into it anymore, all the properties on it are overpriced round our way.

Going to view this house soon

Been told by several agents on our 25k a year (minimum, soon to be at least 30k) with £6 - £8k deposit we could easily see 90 / 100k mortgage.

Fingers crossed :|

quote:

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Originally posted by dannymccann
That house though for example, around here 100% renting would be £600 a month (maybe more tbh)? On £60000 equity we would need £50000 mortgage, I dont know what I would be looking at repayments a month (capital repayment) but obv that repayment + £156 rent, cant see it being much different to £600 a month?

[Edited on 11-01-2009 by dannymccann]

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I looked into this myself with a mortgage advisor and also it was part buy and part rent. Ut worked out really expensive as 50% mortagage repayment worked out 550 pm then £260 rent. Then after you have paid your 35 year mortgage you stilll had to buy the rest of the house, at £550 per month. WHere as if i got a 100% mortgage on the property repayments would of been £750 approx and it was yours after the 35 years.

Couldnt see the benefit myself so opted against it

That house though for example, around here 100% renting would be £600 a month (maybe more tbh)? On £60000 equity we would need £50000 mortgage, I dont know what I would be looking at repayments a month (capital repayment) but obv that repayment + £156 rent, cant see it being much different to £600 a month?

[Edited on 11-01-2009 by dannymccann]

Ok save was maybe the wrong word.............swap save with benifit.

Surely if you have rent as an additional outgoing then you wont get as high a mortgage from the lenders as your affordability will be less so will be in a worse position.

At least with the shared equity scheme your not obliged to be paying anything extra. You can leave their share running for as long as you want or pay it IF you want. Your not paying rent every month to live in the house you pay a mortgage for:boggle:

[Edited on 11-01-2009 by Colin]

quote:

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Originally posted by Colin
Not sure on the part mortgage part rent thing, theres none of that up here. Sounds expensive though paying mortgage & rent. How do you save on that? :boggle:

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Nope but ive been looking at a few deals recently offering shared equity.

i.e. Builder retains 15-25% equity in the house & you pay for the rest.
You own all of the house & have either 10yrs to pay back the equity share or they get their % of market value when you come to sell.

Not a bad thing imo.

Not sure on the part mortgage part rent thing, theres none of that up here. Sounds expensive though paying mortgage & rent. How do you save on that? :boggle:

Anyone actually on the scheme or work with it on a daily basis? Just wondering if its a cost effective way of doing it.

Example of a property

Rightmove = £60000 mortgage / £156p/m rent

Are these properties overpriced at 100% or are they actually a good deal?