Hi Folks,
Long time viewer never needed to ask anything not already asked to death before!
So, with the just announced budget - for the first time .gov will back new buyers to buy a new OR old home, by guaranteeing the mortgate to the banks.
This means deposits should be far lower.
I'm hoping for a 95% LTV?
Does anyone have initial thoughts on what this means?
What the interest rates are likely to be
Whether 95% LTV is a good or bad move?
What the best strategy might be to use this to "step on" to the ladder, with a view to upsize in 5 years.
Background on where I am at.. I am looking to spend £250k at most on a not new (not interested in newbuy, even with the revisions - as I feel that new property prices are massively inflated and there is a high chance of negative equity) property, but only have so far 5% of the deposit.
Me and my partner are now saving approximately 1700 a month as we both live with our parents to maximise what we can save. Due to total combined income of approx 70k before tax, I want to buy a mortgage with a short repayment term and pay quite aggressively to significantly increase equity over 5 years - in order to have an 80% LTV on second property in 5 years.
I don't plan for the first place to be any more than a step.
If we save for a 20% deposit, it'd 50k. That's going to take us another 2 years to achieve. So this could be a real real shining light for us. But is it really? I am sceptical.
In short - I can't help but feel this policy is pretty much absolutely perfect for my circumstances. But I am no expert, and could well be missing things written between the lines.
What is the concensus?
Thanks guys!
Dave
Long time viewer never needed to ask anything not already asked to death before!
So, with the just announced budget - for the first time .gov will back new buyers to buy a new OR old home, by guaranteeing the mortgate to the banks.
This means deposits should be far lower.
I'm hoping for a 95% LTV?
Does anyone have initial thoughts on what this means?
What the interest rates are likely to be
Whether 95% LTV is a good or bad move?
What the best strategy might be to use this to "step on" to the ladder, with a view to upsize in 5 years.
Background on where I am at.. I am looking to spend £250k at most on a not new (not interested in newbuy, even with the revisions - as I feel that new property prices are massively inflated and there is a high chance of negative equity) property, but only have so far 5% of the deposit.
Me and my partner are now saving approximately 1700 a month as we both live with our parents to maximise what we can save. Due to total combined income of approx 70k before tax, I want to buy a mortgage with a short repayment term and pay quite aggressively to significantly increase equity over 5 years - in order to have an 80% LTV on second property in 5 years.
I don't plan for the first place to be any more than a step.
If we save for a 20% deposit, it'd 50k. That's going to take us another 2 years to achieve. So this could be a real real shining light for us. But is it really? I am sceptical.
In short - I can't help but feel this policy is pretty much absolutely perfect for my circumstances. But I am no expert, and could well be missing things written between the lines.
What is the concensus?
Thanks guys!
Dave