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To use builders incentive towards monthly payments?

2 replies

Twobecomingthreeplusthedog · 10/03/2022 13:20

Briefly we are looking to move house but would a financial ‘stretch’ for 2 years then should be a lot easier. By financial stretch, we would still have over 2k a month spare for ‘fun stuff’.

Seen a newbuild, only one left on development and no developments planned for the area in next 3 years.

We get a 15k incentive from the builder. Using it towards stamp duty or deposit is pointless as it changes our monthly payment by 20-30pm.

However we can get the incentive as a ‘lump sum’ when we move in. We could fix for 5 years and use the 5k at £250pm towards our mortgage.

Mortgage is 35 years and 650k but we know in 5 years time we will have lump sum (inheritance due next in next 18 months, probate is slow) of around 130k to pay off when we remortgage.

Are we stupid to use the 15k ‘monthly’ for 5 years?

Both jobs secure and I am due 20-40k annual bonus every year.

Realise this sounds like a massive flex, I just wanted to hear others opinions on using builders incentives in non-traditional ways.

OP posts:
Twobecomingthreeplusthedog · 10/03/2022 13:21

*typo ‘use the 15k’ not 5k

OP posts:
FlippityFlippityFlop · 10/03/2022 15:41

Sounds sensible to me!

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