Property News · October 6, 2016

Could we use the help-to-buy scheme to move to a bigger home?


We’re not sure we can afford the new-build property with a normal mortgage Q I am a nurse and I own a home that an estate agent recently valued at £335,000. My partner and I would like to move to a new-build property costing £550,000. We have an outstanding mortgage balance of roughly £220,000 on our current home and were wondering if we can afford the £550,000 house with a normal mortgage, given our total annual income is around £70,000 including overtime.Would it be wise to use the help-to-buy scheme to move to a bigger property or just save up more as we already have the advantage of being on the property ladder? ATA If you sold your current home for £335,000 and so were able to pay off your current mortgage of £220,000, you would be left with £115,000 in cash to put towards the purchase of another property. However, if you were to buy a house costing £550,000, there would be a stamp duty bill of £17,500, which – if you couldn’t find the money from somewhere else – would bring down the amount of cash to put down as a deposit on the new house to £97,500. This would mean that to finance the purchase of a £550,000 property, you would need a mortgage of £452,000. Given that this figure is almost six and a half times your annual income of £70,000, it is unlikely that you would get such a large loan. Continue reading…

Source : theguardian.com
Read more…Could we use the help-to-buy scheme to move to a bigger home?

You may also like...