Help to Buy

[kentlad]

Hope I'm popping this in the right place.

So, quick summary of my current situation.

I'm 25, living at home. Saving for a deposit for my first place. I'm desperate to move out ASAP as I've got 'that' itch. I need my own space & it's getting me down the fact that I still live at home. Haven't been 'happy' for quite some time if i'm honest.

I earn 30k P/A but a lot of that goes on travel into work (Central London). So i'm looking to move closer in. I've found a few 2/3 bed houses for around the 200k mark which i think is affordable to run, on a monthly basis. I'm probably leaning more towards a two bed, as it will be a lot cheaper on bills such as gas etc.

Deposit wise - I'm looking to move once I've saved around £15-20k (so hopefully in the next year or so)

Does anyone have any first hand experience with the HTB scheme? How the process actually works with regards to applying etc. I've had a browse online but everything that comes back is quite vague.

One last thing i couldn't find any information on...if i was to buy a house & let out the 2nd bedroom to say, a friend...would i still be able to get onto the HTB Scheme?

Any help on the above would be much appreciated!

[kentlad]

Defcon5 said:

I think decisions like that should be made after you have bought the house, and maybe if it was a friend there wouldn't need to be an official agreement that you would need to notify them of

completely agree, it was just a thought as i know one of my friends is looking to move out but can't afford to buy...wasn't a make or break part of the above. Cheers!

[kentlad]

1scotthawkins1 said:

I used the HTB scheme in march this year for my first place with the mrs.
We were just before the new lending scheme came into place so i don't know how much has changed but our combined was just shy of £40K and our bank would lend us upto £166,000 with a 5% depo. in the end we went with £150,000 and used 5% used the rest of our savings for solicitor fees stamp duty etc. All in the end cost was around £11,500.
We did most of our application online and only went into branch once.
Our agreement was that no one else over age of 18 could live in our property apart from those on the deeds.

Dont know if this helps much
Scott

That's a great help mate. Out of interest, and if you don't feel comfortable answering, then please don't... but, what are your monthly repayments on that? Presuming the house was £200k?

And thanks for the clarity on other people living in the house! Great to know from someone with direct experience! Sounds like it was quite an easy process too!

[kentlad]

blank said:

3 beds for £200k sounds cheap for something close to London! Are you looking around Chatham?

I would check some affordability criteria as £150k is likely to be right on the limit with a £30k salary.

I was looking around Greenhithe, Gtone etc. I did look at crayford but i just can't find anything for even close to that money. Like i said, its more likely to be a 2 bed than a 3 bed but it depends on the market. £700 as mentioned below, is pretty much affordable, if i don't go crazy with general living expenses etc.

Thanks for all the responses. Definitely helpful!

Thanks for the info Steve, definitely food for thought!