Tiger
Member
Registered: 12th Jun 01
Location: Leicestershire Drives:Astra VXR
User status: Offline
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Any advice on which are the better schemes out there?
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Marc
Member
Registered: 11th Aug 02
Location: York
User status: Offline
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There are a few save to buy accounts out there, but even they say you aren't guaranteed a mortgage at the end!
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Tiger
Member
Registered: 12th Jun 01
Location: Leicestershire Drives:Astra VXR
User status: Offline
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Wages aren't an issue as such as mine and missus combined wages could easily pay a mortgage and have done before, it's deposit that's impossible to save.
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Marc
Member
Registered: 11th Aug 02
Location: York
User status: Offline
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Thats the point of the save to buy. You don't need the big deposit.
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Tiger
Member
Registered: 12th Jun 01
Location: Leicestershire Drives:Astra VXR
User status: Offline
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I don't quite understand how that scheme works then, it's pointless if they accept you for the scheme but not a mortgage isn't it?
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Ian W
Member
Registered: 8th Nov 03
Location: Wirral, Merseyside
User status: Offline
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Not really, if you get accepted you get plenty of benefits from having saved with them.
You are going to need to save either way so might as well put it somewhere that could work for you later down the line.
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andys sxi
Premium Member
Registered: 19th Jan 06
Location: Chester Drives:Scirocco tdi bluemotion
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When are you looking to buy? There's a new thing out called help to buy isa have you seen it? I haven't really read into it much
April 08 feature car
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jacko198
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Registered: 1st Mar 07
Location: Buckinghamshire
User status: Offline
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As far as I'm aware there are only 2 schemes?
There is the Help To Buy Equity Loan, where you only need 5% deposit to put towards the total. You get a government loan of 20% making your 25% mortgage deposit look good. So your only getting a 75% mortgage. This can only be used on a New build.
Or the Mortgage Guarantee scheme where you only need a 5% deposit towards the house. No government loan so the mortgage is a 95% one through one of the partnered mortgage lenders. You can use this on New and Existing houses. But the monthly payments are quite a bit higher.
Thats why me and the Mrs will be doing the Equity loan scheme as the monthly payments will be lower.
The Help To Buy ISA gives you £50 for every £200 you save so would be worth looking into. Only thing is you can put a max deposit of £1000 in there (so you get £250 interest straight away) Then you can only put in a max of £200 a month in after that. Upto 5 years and you get £3000 interest on your £12000
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Ben G
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Registered: 12th Jan 07
Location: Essex
User status: Offline
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Be aware that people have used these schemes before and have came out worse than they went in e.g. Negative equity.
I'd rather save up a deposit without any help tbh. Might take longer, but at least you're safe in the knowledge that you don't have a mortgage aswell as a government loan to pay off.
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Ian W
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Registered: 8th Nov 03
Location: Wirral, Merseyside
User status: Offline
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quote:
Originally posted by Ben G
Be aware that people have used these schemes before and have came out worse than they went in e.g. Negative equity.
I'd rather save up a deposit without any help tbh. Might take longer, but at least you're safe in the knowledge that you don't have a mortgage aswell as a government loan to pay off.
+1
This was my mindset when I was saving, just saved for longer rather than having something else to worry about further down the line.
I used Nationwide's Save To Buy which allowed me to buy with a 5% deposit + free survey, cashback on completion etc.
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Cavey
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Registered: 11th Nov 02
Location: Derby
User status: Offline
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5 years ago we used the Homebuy direct scheme to get our place, we paid 70% government paid the rest, just started paying interest on the 30%
Wasn't equity. Just the original amount, so the 20k or so our house has increased by will be ours if we ever came to sell.
Obviously we should of been saving over these 5 years to pay off the government loan bit by bit, our plan was to remortgage for a higher amount and pay some off, but life happened and we have an expensive child, so hasn't happened so far.
But our house is in a great area, won't lose money on it, and we're set for life here anyway.
None of this really helps as I'm pretty sure that scheme doesn't exist any more 
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Kyle T
Premium Member
Registered: 11th Sep 04
Location: Selby, North Yorkshire
User status: Offline
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quote:
Originally posted by Ben G
Be aware that people have used these schemes before and have came out worse than they went in e.g. Negative equity.
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Impreza WRX STi
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Haimsey
Premium Member
Registered: 8th May 05
Location: Nottingham Drives: Corsa B
User status: Offline
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That help to buy isa (like all schemes) reads well at first glance.
When you study the details it's where you see the problems.
If you're in it for a long haul then great, but the amount you can pay in each month is what makes it a long haul scheme. It's not 'drop 12k in and we give you 3k'.
The government wouldn't do it unless they can line their own pockets somehow.
That said, saving up must be hard if not living at parents.
The nationwide options were something i considered but in the end I just opened up halifax accounts and nationwide accounts and moved money round each month to make as much as possible off it.
Marcy Marc
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
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Best schemes are ones where no-one else is involved imho, as if you have to move urgently or what have you,it will cause issues.
Best thing to do is save as much as you can with 5% in mind then go for the Save to Buy or Help to Buy Mortgage Guarantee schemes.
Yes higher repayments but it is all yours. And interest rates for those schemes are "only" circa 4.99%, which, isn't that bad.
In 2 years if the market has gone the right way you should be able to get a better rate/deal with increased equity.
We've been paying £713 for the last 10 months but only paid off about £1500 the loan.
Good news is we bought for £140k and a house down the road is up for £170k 
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Cole
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Registered: 11th Nov 02
Location: eastbourne Drives:zafira sold now a qashqai
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best scheme get a council house live in it for a while then buy it on right to buy did that last yr with mine 148k value paid 79k mortgage used the equity that the council kept as my deposit yes you can do that. After 5 yrs the whole house becomes mine so in theory 70k profit with less outlay plus it means each yr 14k is the theoretical amount I make on my house which I can take out for improvements etc
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Ben G
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Registered: 12th Jan 07
Location: Essex
User status: Offline
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Only problem there is council houses tend to be in awful areas.
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Cole
Member
Registered: 11th Nov 02
Location: eastbourne Drives:zafira sold now a qashqai
User status: Offline
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mine isn't houses across the road range from 300k up to 500k+. Guess im just lucky tbh I have lived in this row of houses for over 30yrs be it this one im in now or the one next door that my parents live in
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