Soldato
- Joined
- 27 Dec 2005
- Posts
- 17,316
- Location
- Bristol
Is there a waiting list or do you have to be invited to it or anything?
20k in Santander, where next?
- Thread starter Uther
- Start date
Is there a waiting list or do you have to be invited to it or anything?
Soldato
- Joined
- 27 Dec 2005
- Posts
- 17,316
- Location
- Bristol
Don't you need a BTL mortgage even if it's his first/only purchase? From what I'm aware of, yes, in which case 20k won't get you very far on a 75% LTV, even in the Midlands.
Soldato
- Joined
- 3 Oct 2009
- Posts
- 19,893
- Location
- Wales
I see no reason whatsoever why he shouldn't open a Help to Buy ISA.
Sure, the interest rate is only 2% now (mine was 4%) but why would you turn down the potential of £3,000 free money should he ever decide to buy a house in the future. I just got £1,100 bonus towards my house which together with my mortgage cashback paid for all my fees with change. Plus there is no penalty if you want to withdraw and not buy a house.
As far as I'm concerned it's a no brainer.
Sure, the interest rate is only 2% now (mine was 4%) but why would you turn down the potential of £3,000 free money should he ever decide to buy a house in the future. I just got £1,100 bonus towards my house which together with my mortgage cashback paid for all my fees with change. Plus there is no penalty if you want to withdraw and not buy a house.
As far as I'm concerned it's a no brainer.
Thinking about doing this but never heard of Skipton and didn't know If there LISA was worth doing?? I've got around 4k in a HTB and looking to buy my first home next year. Would this work by putting a pound in and throwing the money over next year?
Is there a minimum time the money has to stay in the account or can I just transfer the money when I'm going to buy and still get the bonus asking as a pound is there for a year? This obviously reduces risk of 25% loss.
I bought my first house (with my then GF) when I was 25, best decision I ever made.
3 Bed Semi-detached
Large Garden
Driveway for 3 cars
We had an offer accepted for £128k with a 10% deposit (£12,800), add solicitor fees ontop cost us around £16k. Did some light work to it (probably spent about £6-7k on it to date) and just had it valued at a shade under £200k
Thats ~£50k equity in the last 6 years. We've been lucky, it may not be that way for some poeple but I'd say to anybody, get on the property ladder early. Its a great investment for the future.
3 Bed Semi-detached
Large Garden
Driveway for 3 cars
We had an offer accepted for £128k with a 10% deposit (£12,800), add solicitor fees ontop cost us around £16k. Did some light work to it (probably spent about £6-7k on it to date) and just had it valued at a shade under £200k
Thats ~£50k equity in the last 6 years. We've been lucky, it may not be that way for some poeple but I'd say to anybody, get on the property ladder early. Its a great investment for the future.
Soldato
- Joined
- 29 Jul 2013
- Posts
- 8,620
This was either a long time ago, in another country, or in a part of the country where not many people want to live.
£128k for a decent size 3 bed semi!
20K saved at 20 from working at McD's. I thought I was doing alright with half that at 22, working in IT.
I'm guessing he doesn't have rent to pay, or a car, and doesn't have any vices like alcohol or smoking etc to have saved so much. Impressive going...
haha, tell me about it... I'm not doing too bad with my money management but with rent, car etc saving 20k is not easy
20K saved at 20 from working at McD's. I thought I was doing alright with half that at 22, working in IT.
I'm guessing he doesn't have rent to pay, or a car, and doesn't have any vices like alcohol or smoking etc to have saved so much. Impressive going...
Yep, pays rent, not a huge amount but we wanted to instil some financial sense into him that life costs, better to learn that early rather than after running up huge debts! He does run an old car, a 2002 Fiesta, but he only passed his test in March.
All his friends went to uni, he went to work.
Im not gonna lie, it needed a lot of work to get it up to standard! When we put our 'lowball' offer in, it had been on the market for well over 12 months, we eventually settled at £128k (22k under asking price) as they just wanted it sold.
The previous owners bought it new in 1962 so when we bought it in 2011 it still had the original twisted braid cable for the electrics. we found about 4 layers of wallpaper from over the years too. we also had to remove on old skool stair lift that had sat for so long the motor had seized.
We lived in it for 4 years whilst renovating it before we eventually decided to rent it out.
My wife and I both have savings accounts with Skipton, she set hers up first and has an IR of 0.5%, I set mine up almost 3 years ago and currently have an IR of about 2%. I cant remember what kind of account we have but we have 14k in each (we transfer 500 in each month to both accounts).
May have to look at changing to a better ISA once we return back to the uk next year.
May have to look at changing to a better ISA once we return back to the uk next year.
agreed.
So I've got til April 2018 to move It in? And do I instantly gain 25% on it if I buy a house once a years passed
Can't afford to do it? lol. I think you'll find there's a good crowd of people that hate BTL because it's ruined the housing market in this country. Not to mention leading him down the path of BTL is inherently more dangerous than getting a mortgage for himself. He'll still be borrowing an awful lot of money from the bank.
Argh. Because now that there is a LISA available it is a far better product. The maximum annual bonus from HTB is what, £850? You can get £1000 annually from the LISA. And if you don't end up buying a house (unlikely if he's only 20yrs old and already has what could be a deposit of £20k, then just put it towards retirement. There you go, you've taught your son to save for later life at the same time. If he continues saving as well as he has, then he can afford to put £4k in a LISA every year and continue to top-up is other savings.
Martin Lewis has done a lot on HTB versus LISA; http://blog.moneysavingexpert.com/2017/03/21/switch-help-buy-isa-lifetime-isa/
I'm not sure about this so I just took £4k out of my 'normal' cash ISA and chucked it in the LISA> When interest rates are as terrible as they are right now, the difference between say 1% of 4000 and 0.5% of 4000 is fairly negligible.
Caporegime
- Joined
- 30 Jul 2013
- Posts
- 30,189
I believe a store manager makes 30k per year.
Would be surprised if he's a store manager. More likely an area or floor manager.
Shift manager, takes home 300 a week.
Not sure why you think we would be getting confused. Both HTB and LISA offer 25% bonus when used towards first time property purchase. Had I known about the LISA I would have suggested that first. Take both! LISA first and if you can comfortably hit £4k per year then put the overflow in to a HTB ISA as well.
The LISA caps at £4k per year and the HTB ISA at £2.4k (after the inital lump sum £1.2k).