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Original poster

What would you do in this situation? Help to Buy scheme.

16 replies

Tootiredtosleep · 29/05/2014 17:05

I can't make up my mind. I think I know what I want but not sure if my heart is ruling my head ...

We currently live in a 4 bedroom mid terrace 1930's house with a conservatory and long garden/decking area. It's very nice and I know we are very lucky to live here.

We have about £60k worth of equity, and the value of the house would allow us to borrow £20k (we would love a downstairs loo/en suite and work to the fourth bedroom to make it more habitable.

However, we also have £20 worth of debt in the form or loans, the longest one will take another 4 years to pay off. We have done really well in getting this debt cleared - it stems from a long period of unemployment. So if we borrowed £20k to do work in the house we will still have the debt.

They are building new builds nearby and I really like the thought of a 4 bedroom detached property with a garage, downstairs toilet and everything new and no work!

We could sell our current home, pay off our debt and move into this new house. We would keep our mortgage the same. However, we could need to use the 'Help to Buy' scheme to do this.

It seems a bit too good to be true. Sorry if I'm rambling of this doesn't make sense. I need to make a decision soon and it's driving me to distraction!

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Damnautocorrect · 29/05/2014 17:34

Personally I've done the new build thing and it wasn't all that. Massive snagging list builders not interested, living on a building site was awful. The build was poor, garden small and it was difficult to sell despite supposedly being the high end developer.

Give me a 1930's big plot house any day.
But that's me.
Financially a move costs money in fees estate agents, solicitors, stamp duty. That's good money that could go towards your debt.
Sounds like you need a spreadsheet to really drill down and analyse if it will work for you

Original poster
Tootiredtosleep · 29/05/2014 17:43

How long did you live in the new build damnautocorrect? I would be looking at it for a 'forever' home. It's just that it offers us things that we will never have here as we are mid terrace so for example, will never have a garage (which we would love).

I hear what you are saying, but I don't think it's want I wanted to hear !!

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Damnautocorrect · 29/05/2014 17:52

Sorry!! I was In it three years, bought as a forever home but didn't work out that way. I part ex'd to get there and they paid stamp duty so cost to move was massively reduced.

Don't forget the cost factor of the move (removal, boxes etc) post redirection, even new cushions to match your new decor. Little things but it does add up and you don't want to find yourself financially worse off in a smaller house.
I really really get the shiny new appeal, but for me the bigger plot and better build wins it as you can extend without losing your garden. But that's me.

One worth noting check the physical size of the garage mine was the only one on the plot you could get a car in and open the doors partially everyone else's cars wouldn't fit!!!

Original poster
Tootiredtosleep · 29/05/2014 18:20

Don't be sorry. I need to hear all views! It's a big decision. I suppose if it seems too good to be true, then it probably is. Was it personal reasons you moved, or was it to do with the house?

A bigger nicer house, debt paid off, with a similar mortgage is very tempting.

I think you are verbalising my inner fears! I am afraid I won't like being on an 'estate' and I worry about the resale value of the house. I just get so lured in by the 'newness' of everything. Our current house has stopped working for us but I know it's a more desirable area etc.

We would be looking at them paying stamp duty and a reduced price on the house (they have indicated they would do this if we get a sale on our house soon).

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Original poster
Tootiredtosleep · 29/05/2014 19:16

anyone else?

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HaveToWearHeels · 29/05/2014 20:49

I am in a new build and it is my forever home. I would love a period property but to get what I have would be another 200k. This house is an easy house, that gives us the freedom to do what we want with our lives and money.

NotAnotherNewNappy · 29/05/2014 20:50

I wouldn't have thought you'd qualify for help to buy, seeing as you're not a first time buyer?

In any case, I'd stick where you are. Moving is expensive. Make a plan to pay off your debts and prioritise that above everything else.

Original poster
Tootiredtosleep · 29/05/2014 22:09

We do qualify for Help to Buy equity loan, you don't need to be a first time buyer.

I love new houses but have never lived in one, so interesting to hear others points of view.

I'm so afraid to let this opportunity pass us by, as it may be the only way we could afford out own detached home.

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Original poster
Tootiredtosleep · 29/05/2014 22:10

Thanks for all your help and advice!

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finefatmama · 30/05/2014 00:32

we bought one of the last houses on a new development so didn't have to put up with a lot of disruption. went from renting and a horrible landlord so in a much better place with no regrets. We are still working on snags but considering that we would have had to pay to fix it if we had bought an old property and discovered the same issues, it's not bad. the mortgage we opted for came with a stamp duty paid offer. We were with the equity loan at the time because I was so sure the property prices would crash and the equity would take a share of the loss.
The only down side with going for the scheme was that they had a different house price for non htb buyers and a £15k gifted deposit. overall we are happy with the choice we made.

ThePerfectNegroni · 30/05/2014 06:18

Sorry but I'm going to be a loan dissenter. Why not pay off your debts and then make overpayments on your mortgage so you build up more equity and can move on a better interest rate. You don't have to move, you have a lovely home already. I know that new builds near me have all depreciated and aren't always a sound investment.

Bohemond · 30/05/2014 06:57

You do know that you will have to pay back the money the government lends you - albeit from 5 years. So it's not as if your mortgage will stay the same. You will owe the debt plus the help to buy money plus the mortgage.
Pay the debt off before thinking about moving.

halfwildlingwoman · 30/05/2014 07:01

If you like the house you are in. Don't move. That is all!

Original poster
Tootiredtosleep · 30/05/2014 09:32

Thanks everyone. I think most of you are voicing my doubts. It's making it a bit clearer in my head.

Should add that I'm 47 and DH is 48 so if we don't move now, when debt is paid it will be too late.

I know we will still have the Help to Buy to pay but it won't cost as much as the debt. Hope that makes sense.

Thanks for the positive stories also!

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Chillycamper · 30/05/2014 22:59

I agree about the age thing. I can say this hopefully without offence as I am same age as you! You start to look a bit ahead..

We are hoping to move next month and we were a bit taken aback when mortgage advisor said we could only have mortgage over 17 years 'because of your age".

I got used to ithe idea and chose a house that is smaller than ours, easy to clean/maintain with easy garden.

A retirement house already LOL

Original poster
Tootiredtosleep · 31/05/2014 08:29

A retirement house .., now there's an idea!

We are looking at a 15 year mortgage, don't fancy working until I'm 70, although that seems to be where things are heading!

Still not made a decision though ....

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