Author Topic: NewBuy Scheme (Read 19097 times)

Rivkid · **Reply #30 on:** March 25, 2013, 16:21:05 PM

Re: NewBuy Scheme

Reply #30 on: March 25, 2013, 16:21:05 PM

Quote from: M3ta7h3ad on March 25, 2013, 09:15:20 AM

Quote from: Rivkid on March 25, 2013, 08:53:03 AM
Only way to be sure...

Well that, or you could nuke it from orbit but that'll likely cost more

Sent from my Nexus 4 using Tapatalk 2

Quote from: Clock'd 0Ne on March 25, 2013, 12:04:01 PM

I wonder if household insurance policies cover a nuking from orbit

Love this forum - I knew you guys would pick that up!

Rivkid · **Reply #31 on:** March 25, 2013, 16:22:57 PM

Re: NewBuy Scheme

Reply #31 on: March 25, 2013, 16:22:57 PM

Just noticed Barclays are doing a 95% LTV mortgage if a family member agrees to put 10% of the house value into a Barclay's savings account for 3 years. Hmm now that's interesting - might speak to some of the family about that. It still earns 1.5% for them so might see if anyone's willing to shift some cash around for us.

Dave · **Reply #32 on:** March 26, 2013, 01:01:49 AM

Re: NewBuy Scheme

Reply #32 on: March 26, 2013, 01:01:49 AM

Quote from: Sam on March 24, 2013, 22:46:35 PM

Quote from: Dave on March 24, 2013, 22:38:42 PM
Quote from: Sam on March 24, 2013, 18:26:15 PM
Quote from: Adrock on March 24, 2013, 10:52:20 AM
I, for one, dont understand the preoccupation in this country with wanting to own your own house. In and around London its cheaper to pay a mortgage than rent in the majority of cases, so that would make sense. I'm not sure about the rest of the country, is that the case too? If it isn't there really is no need for people to own their homes.

Might be the other way around. I pay 1850 rent a month on a flat worth 500k. A mortgage on that would be about 2.2k a month if I put down 20%.

nah - 1732 with 20% deposit - and you could get it down to £1,600 with a 30% deposit....(HSBC lifetime tracker) also consider that part of that is being spent on capital repayment - tis probably more reasonable to compare the rent with just the interest portion of the mortgage in terms of the actual 'cost' to you in the long term. Buying would be a preferable option if you're planning on staying somewhere for a decent length of time... (obv you've got stamp duty etc.. and legal fees too presenting extra up front costs)

20% is 100k down and 30% is 150k. That's a big chunk of change for anyone so obviously it's easy to say, yeah put down 20% or 30% but its far easier said than done.

That said, this bbc tracker at 5% shows repayments at 2300 a month on 20%
http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml

And once interest rates start to increase in the next few years, could be an expensive hobby buying a house !

Well if we're talking about buying then having a deposit is kind of implied... I guess for people who don't have one the new govt scheme this thread is about comes into play (they'll lend the 20% deposit for properties up to 600k) - either way at current prices it is cheaper than renting long term.

As for 5% have you seen interest rates recently? I can get 2.69% with HSBC... would require a fair few rate hikes to get to 5% - though it is certainly possible and I guess people who've taken out huge multiples (mine is less than 3 * salary) might struggle if rates rise.

Sam · **Reply #33 on:** March 26, 2013, 08:55:01 AM

Re: NewBuy Scheme

Reply #33 on: March 26, 2013, 08:55:01 AM

Well I couldn't get 2.7% as a contractor. Might get like 4.7%

bytejunkie · **Reply #34 on:** March 26, 2013, 09:20:16 AM

Re: NewBuy Scheme

Reply #34 on: March 26, 2013, 09:20:16 AM

one of you is tlaking about interest rates on a mortgage and one on savings? no? totally different things.

Dave · **Reply #35 on:** March 26, 2013, 21:13:53 PM

Re: NewBuy Scheme

Reply #35 on: March 26, 2013, 21:13:53 PM

Quote from: bytejunkie on March 26, 2013, 09:20:16 AM

one of you is tlaking about interest rates on a mortgage and one on savings? no? totally different things.

nope we're both talking about mortgages

though its fair to conclude that whether buying or renting is a good option is fairly dependent on your particular circumstances

a lot of people have the idea that buying is *always* a good option "property always goes up innit" etc.. and as a nation we do have this obsession with owning our own homes

if you're only planning on being in a place for a year or two, if you've got a bearish view on the property market, if a mortgage would present a significant cost due to a small deposit or if you're self employed and so have to pay a higher rate then with any of these factors renting might well be the optimal choice

I actually know of one contractor who has recently taken up a full time job with the intention of not remaining there for more than a year for rather beneficial reasons - she wants a mortgage and she wants to have a kid & claim maternity pay...

bytejunkie · **Reply #36 on:** March 27, 2013, 08:45:05 AM

Re: NewBuy Scheme

Reply #36 on: March 27, 2013, 08:45:05 AM

add another to the list. ive taken a year long contract to get my credit history solid so i can get a decent car loan. the banks dont care that im earning the equivalent of 70k a year, they won't lend me 3k to get a car. so a lower paid long term contract it is. ho hum.

soopahfly · **Reply #37 on:** March 27, 2013, 09:36:10 AM

Re: NewBuy Scheme

Reply #37 on: March 27, 2013, 09:36:10 AM

I had a terrible credit history. I ended up having to get a credit card, and clearing it every month, and getting a contract mobile phone.

My history was that bad that only Capital One would touch me, and i had to go through specialist insurers and phone types.

Now, my history is perfect

Dave · **Reply #38 on:** March 27, 2013, 21:09:34 PM

Re: NewBuy Scheme

Reply #38 on: March 27, 2013, 21:09:34 PM

Quote from: bytejunkie on March 27, 2013, 08:45:05 AM

add another to the list. ive taken a year long contract to get my credit history solid so i can get a decent car loan. the banks dont care that im earning the equivalent of 70k a year, they won't lend me 3k to get a car. so a lower paid long term contract it is. ho hum.

Just curious but why do you need to borrow 3k to buy a car if you're earning approx 70k a year? Can't you just pay yourself 3k in dividends?

bytejunkie · **Reply #39 on:** March 28, 2013, 09:15:34 AM

Re: NewBuy Scheme

Reply #39 on: March 28, 2013, 09:15:34 AM

everything i earnt from that ridiculous contract went into the pot to pay for the new house.

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Author Topic: NewBuy Scheme (Read 19097 times)