Help to buy help?

[NoWhereToGoo]

Can someone explain help to buy for me please?

We currently rent but that's had to stop (I have another thread in that). There is a new build development not to far from where we are now and they do the help to buy scheme and it's confusing me.

The house is £225,000.

We have £2000 in savings.

Is it worth looking into?

25% is £56000 so we would get a mortgage for that and then pay rent? Is this right??

The Countrywide help to buy that I've used requires a minimum of a 5% deposit. They then top your deposit up to make 25% of the purchase price. You then need to be able to mortgage for the remaining 75%.

The help to buy loan is interest free for 5 years during which you are not required to make payments towards it. After the 5 years you can choose to pay only the interest each month and continue to owe the loan amount to be paid off at a later date. Payments to the loan can only be made in £1000 chunks.
I plan to pay what I can after the 5 years then remortgage to incorporate the remainder of the loan into my mortgage.

Not sure on different schemes but I hope that helps. There should be an help to buy advisor who can talk it all though with you if you contact the agent selling the house.

You would need a deposit of £11250 then help to buy would put £45000 so then you would need to get a mortgage for £168750. Plus also you will need money for stamp duty and solicitor fees. The solicitors fees are a little more than normal new build purchase as you are dealing with 3 party's not 2. Stamp duty should be £2000. As above yiu pay it back after 5 years in monthly installments or you can remortgage ..hope this helps. Also if buying a new build some times they will pay stamp duty or legal fees for you. Good luck

Better keep saving then! Thank you

There is also part rent part buy which you buy a small percentage of the property and the rest is rented. I think you do it through the housing association. You also have the option to buy more shares. I know some one who did this and went on to buy outright. It's great of you don't have a lot of cash upfront.

Sounds like you are getting mixed up between help to buy and shared ownership OP. Shared ownership props are when you buy a % of the property, normally 50% to begin with I believe and get a mortgage on the 50% and then pay rent on the other 50% which works out a lot cheaper than renting.

Shared ownership props (50% share or so) cost around £75,000 in the SW and accept 5% deposits so you'd need roughly £3,500 for a deposit. Plus solicitors costs and no SDLT would be paid as the house price is lower than the threshold.

Ahh yes it's shared ownership I was thinking of, thank you!