Help to Buy - 5% Deposit, 20% Goverment Deposit, 75% Mortgage.

[silverzx]

So... Following choosing not to be a pikey...

Help to buy schemes.

Who’s got one (if anyone)? Any first hand experience they care to pass on that won't be found from research alone?

I've knocked this little table up, total house price, deposit required, governments contribution, mortgage amount, borrow amount and repayment based on % over 25 years.

Total            Deposit        Gov20%       Mortgage    3.5% 25yr            5.0% 25yr            6.5% 25yr
£200,000     £10,000      £40,000        £150,000    £225,281 £751    £263,006 £877    £303,843 £1,013
£190,000     £9,500        £38,000        £142,500    £213,226 £711    £249,035 £830    £288,651 £962
£180,000     £9,000        £36,000        £135,000    £202,753 £676    £236,759 £789    £273,459 £912
£170,000     £8,500        £34,000        £127,500    £190,738 £636    £222,729 £742    £258,267 £861
£160,000     £8,000        £32,000        £120,000    £180,224 £601    £210,452 £702    £243,075 £810
£150,000     £7,500        £30,000        £112,500    £168,960 £563    £197,229 £658    £227,882 £760
£140,000     £7,000        £28,000        £105,000    £157,696 £526    £184,146 £614    £212,690 £709
£130,000     £6,500        £26,000        £97,500      £146,432 £488    £170,993 £570    £197,498 £658

This leads me to ask, if say with help to buy that I'm enquiring about I take the Halifax mortgage which is fixed 5 years at 3.5%, does that mean I'm borrowing a fixed amount of £135,000 on say a £180,000 house?

Or does the amount I'm borrowing fluctuate throughout the 25 years (or is that just the interest that fluctautes)?

I'm just confused if you borrow a FIXED amount e.g. the £135,000 I need and then repayments are completely dependent on interest rates so you've still technically borrowed £135,000 and the interest rate decides how much they get to take off you?

As an example, if I take the £180,000 house, borrow £135,000 and get 5 years at 3.5% then that rises to 5% for the last 20 years, does that mean I'll pay:

£676 PCM x 5 years = £40,560.
£789 PCM x 20 years = £189,360.
Total of £229,920 over 25 years for borrowing £135,000.

Any hidden costs? Solicitor fees? Stamp duties? Are early repayments capped? I'd like to repay as much as possible at the start.

This then leads me on to should I buy a 2 bed semi for £157,000 or stretch (if mortgage company allows) to a 3 bed semi for £188,000?

Here's some of the houses in question:

3 Bed: Link







2 Bed: Link








I'm going to be asking the housing company all these questions but thought I'd put it forward for discussion anyway.