Often seen with developers/new developments - but can anyone see any "gotcha's" with offering this as an incentive in a private sale?
e.g. Buy our house for £xxx,000.00 get cash on completion of £y,000.00 where the house is valued AT OR ABOVE x, and y is a small-ish %.....?
Phil.
=BF=BDy,000.00=20
Down side is that you end up paying in mortgage amounts =A3y,000 x interest= rates over 25 years (though you could just repay that element of the mortg= age instantly, subject to overpayment fees etc).
The offer is appealing to purchasers as they then have =A3y,000 available t= o buy carpets etc financed at mortgage interest rate levels, rather than sh= ort term unsecured loan levels.=20
Matt
Sometimes attractive for first time buyers on the right sort of property (so long as the hike in price does not push it over a stamp duty threshold).
It's very bad judgement to buy things on, say, a 25 year loan where they don't have that sort of life.
What's wrong with bare floorboards or secondhand rugs etc until you can afford to buy new?
Often seen with developers/new developments - but can anyone see any
Stamp duty.
Mike
Indeed. If you are going to do it, then get an offset mortgage in the first place, then you can at least pay off the "extra" borrowing much sooner while still benefiting from mortgage rate lending.
In message , "Dave Plowman (News)" writes
How very 1960s, I thought these days everything had to be brand new (says he who used what ever he could scrounge for years).
Adrian
In message , "Dave Plowman (News)" writes
How very 1960s, I thought these days everything had to be brand new (says he who used what ever he could scrounge for years).
-------------------------------------------------------------------------------------------------
But you would be right.
The average 20 something girly would come out in a huge rash at the thought of having to have "make do" furnishings in her new house
tim
Yup. Many these days don't seem to realise credit has to be repaid - eventually.
I expect they take their lead from the Government.
HomeOwnersHub website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.