Help to buy equity loan, issue...

Potbellypig · 11 June 2017 at 8:10PM

Cut a long story short...

Want to buy a new build house with the Government Help to Buy 20% equity loan. Went through a broker who said that we'd be okay at looking at applying for a mortgage of £225k (that's more than needed) and he'll do this once I've registered and had the HTB loan approved. Fair enough. Applied for the HTB and they came back and said that I needed to actually have a reserved plot before they can look at it. Fair enough. Went to reserve a plot on Saturday to find that I couldn't reserve a plot until I had a Decision in Principal. Jesus.

I'll be speaking to the mortgage broker tomorrow to see what the craic is from here, but I thought I'd check on here to see if anyone had a similar issue.

peter333_2 · 11 June 2017 at 8:16PM

Hi who are you reserving this plot with??a lot of banks can do a decision in principle without even doing a credit check so might be worth just doing one and printing it off to show the builder..I have currently reserved a plot and been arrpoved for the help to buy loan..bellway put me into the nhmh.co.uk and they done the aip for me and told bellway I passed all affordability etc??

SeagullFTB · 11 June 2017 at 8:19PM

I'm using the equity loan at the moment. Fortunately my MA gave us all the information upfront.

We reserved a property with Taylor Wimpey. They insisted that we contacted their MA to see if we qualify for reservation. They simply applied for a DIP with Halifax (soft credit check) to confirm that we could borrow the required amount.

We've reserved the property. We're in the process of applying for the equity loan authority to proceed. And we're hoping a mortgage offer from Halifax this week.

It's a lot to take in but a good MA is invaluable.

kingstreet · 12 June 2017 at 7:59AM

It's;-

agreement in principle
reservation
HTB paperwork submitted
HTB Authority To Proceed issued
mortgage application submitted.

As stated, you can't apply for HTB Equity Loan without first reserving a property as the property information form and reservation are the submission documents.

Potbellypig · 12 June 2017 at 4:32PM

Ok thanks.

The decision in principal was sent over from the broker this morning and I have a reservation appointment next Sunday.

Looking at numbers, this is what I'm looking at:
£10750 deposit
£895 broker fee
£500 to reserve a plot
£3803 quote from a solicitor for their fees, which includes stamp duty.
I also know carpets and turf are definitely required to purchase too. I'd guess at £1500 for them.

From anyone's experience, what other add-ons am I going to get along the way?

No wonder no-one can afford these things!

kingstreet · 12 June 2017 at 4:35PM

So you're paying £895 for a broker who doesn't know you have to reserve a property before you can submit the HTB documentation?

Find another.

smem18 · 12 June 2017 at 5:14PM

I would say that £895 for a broker is really expensive personally! During my first round of applying for a mortgage through a broker, I was quoted £200 and he was brilliant. As it happened, we got gazumped due to the agent being dodgy and it all fell through really quickly so we never got to see it through. The broker obviously didn't charge us.

The second time around we went for a new build and the build had a broker service which was FOC. We used him and he's been so good too and got us our mortgage offer absolutely hassle free. It was a slightly unusual case as well because we needed a new build flat mortgage with only a 10% deposit...and there's just one lender who would be willing to lend! (Gulp).

The brokers make a tidy sum from the mortgage lender for recommending their mortgage to you, so I just feel £895 is steep personally.
Does the build offer a free or discounted broker service maybe? Or I'd be happy to recommend my broker to you if you direct message me (I'm guessing we're not allowed to name names on this forum?)

Potbellypig · 12 June 2017 at 7:56PM

smem18 wrote: »

I would say that £895 for a broker is really expensive personally! During my first round of applying for a mortgage through a broker, I was quoted £200 and he was brilliant. As it happened, we got gazumped due to the agent being dodgy and it all fell through really quickly so we never got to see it through. The broker obviously didn't charge us.

The second time around we went for a new build and the build had a broker service which was FOC. We used him and he's been so good too and got us our mortgage offer absolutely hassle free. It was a slightly unusual case as well because we needed a new build flat mortgage with only a 10% deposit...and there's just one lender who would be willing to lend! (Gulp).

The brokers make a tidy sum from the mortgage lender for recommending their mortgage to you, so I just feel £895 is steep personally.
Does the build offer a free or discounted broker service maybe? Or I'd be happy to recommend my broker to you if you direct message me (I'm guessing we're not allowed to name names on this forum?)

Yea, I'm having to go through a contractor mortgage broker as I'm a contractor who owns a Ltd company. Add to that I've only got 1 years accounts with the year before going through an umbrella company.

The developer have their own lender but they wouldn't lend enough (as technically I pay myself minimum wage) and I've tried 1 other lender who said the same thing. I do have a friend of a friend who is also looking into it for me too.

It's not straight forward unfortunately.

peter333_2 · 12 June 2017 at 9:19PM

Hi who is the builder and what site???you need to try and get some
Freebies out of them. .weve reserved a property and they gave us free carpets and turf, they also paid out stamp duty and gave us 1000 towards legal fee's..try negotiate some freebies

SuboJvR · 12 June 2017 at 10:42PM

For our new build, I believe our reservation fee will reduce the deposit by the same £500.
Probable mortgage arrangement fee up to or around £1000
Carpets and turf I would budget more based on my recent searching but depends on size of your house and stuff.
Removal costs if using.
Cost of overlapping rent if applicable.

Potbellypig · 13 June 2017 at 7:27AM

peter333 wrote: »

Hi who is the builder and what site???you need to try and get some
Freebies out of them. .weve reserved a property and they gave us free carpets and turf, they also paid out stamp duty and gave us 1000 towards legal fee's..try negotiate some freebies

Good shout. Thanks.

Help to buy equity loan, issue...

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