I was thinking of getting on this help to buy thing as I’ve just secured a pretty tidy new pay rise and really need to move out at 25! TBH I don’t understand enough about this sort of thing enough though, think I should probably seek professional advice!

But I hate the idea of just throwing money away on rent, when on this scheme I could be paying the same as rent on mortgage payments and actually getting something at the end of it, plus a nicer place to live than a rented property with a crap landlord..

LHS – Member

I wouldn’t solely because it locks you into a high interest rate for a long time.

What, as opposed to giving 100% of your rent to the person that owns the house?

Figures completely made up, as it’s no sensible time of day to be doing maths, but – I’d much rather pay £250k over a lifetime and end up with a property worth £150k (ignore inflation/rising house prices), than pay £200k over a lifetime and end up with sod all.

At the end of your lifetime, you’ll not be needing a house! 🙄 😉

plus a nicer place to live than a rented property with a crap landlord..

Good luck getting a nicer property with a mortgage than in rent for the same cash.

As a first time buyer, you will presumably be mortgaged up to the hilt on a not so great interest rate. A £275,000 mortgage would get you a decent 2/3 bedroom house in a nice suburb area of glasgow or a 2 bedroom flat in a really nice area of glasgow. That’s about £1,500 a month. £1,500 a month will open up all but the most expensive properties on the rental market.

Why not go for the deal, and then save, by the time you want/need to remortgage you will be ready, with the money you would have been saving either way.

Provided you can still afford to do this, then why not. I found when moving into a house though, that you discover lots of things you need to buy, like a BBQ, dining table and chairs, sofas, fridges. Then the car goes wrong!

I guess it’s all about discipline, I’d been renting for 8 years or so and had a 10% deposit, it would have been better to wait and get to 15%, but I’d had enough of renting and wanted to get into a house with a garden rather than a flat. I am now planning overpayments to reduce my ltv though and have recently moved to a much better rate.

“Good luck getting a nicer property with a mortgage than in rent for the same cash.”

my mate gets 1600 a month rental on a 3bed in rough condition on deeside.

i pay no where near that in mortgage on a 3bed in a nicer area of deeside……

also

“Why not go for the deal, and then save, by the time you want/need to remortgage you will be ready, with the money you would have been saving either way.”

exactly what we did – had 20% saved – bought a house that needed new heating , rewiring and redecorating – spent the 10% on doing that ASAP – saved it back up and i have cash injection to put in at remortgage in feb IF it makes a difference to the interest rate.

If i got anywhere near 1600 a month in rental return id be happy 😉 – point being is that folks round here want turn key housing so you can get a good deal up here.

Good luck getting a nicer property with a mortgage than in rent for the same cash.

As a first time buyer, you will presumably be mortgaged up to the hilt on a not so great interest rate. A £275,000 mortgage would get you a decent 2/3 bedroom house in a nice suburb area of glasgow or a 2 bedroom flat in a really nice area of glasgow. That’s about £1,500 a month. £1,500 a month will open up all but the most expensive properties on the rental market.

I’m not planning on spending nearly that much money on a house, probably less than half that! All the rentals I’ve viewed round here are shit and overpriced. Either that or house shares which I have no interest in after uni.

also FYI

competition on rental market – my girlfriends little sister is looking for a flat in aberdeen just now

even post UNI student influx – there were 80 folk viewing the last rental she viewed.

That’s interesting TR, very different from the situation in Glasgow for the last while.

Perhaps there’s a ceiling on rent in Glasgow though, demand is lower for the £1,500+ houses, so perhaps that pushes those which would be closer to £2k+ into the band below.

The last place I rented was £1,450 a month and when I looked to the cost of buying, it was around £375k. That’s not unusual, particularly around areas like Park Circus, Newlands, Thorntonhall etc. Which is quite odd, since there aren’t actually that many rental properties which I thought would push the rental cost up. Presumably it’s people with small(ish) mortgages who are renting them out, rather than someone buy a property on a 75% buy-to-let.