Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • Potbellypig
    • By Potbellypig 11th Jun 17, 8:10 PM
    • 126Posts
    • 57Thanks
    Potbellypig
    Help to buy equity loan, issue...
    • #1
    • 11th Jun 17, 8:10 PM
    Help to buy equity loan, issue... 11th Jun 17 at 8:10 PM
    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.
Page 1
    • peter333
    • By peter333 11th Jun 17, 8:16 PM
    • 25 Posts
    • 7 Thanks
    peter333
    • #2
    • 11th Jun 17, 8:16 PM
    • #2
    • 11th Jun 17, 8:16 PM
    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
    • By SeagullFTB 11th Jun 17, 8:19 PM
    • 41 Posts
    • 19 Thanks
    SeagullFTB
    • #3
    • 11th Jun 17, 8:19 PM
    • #3
    • 11th Jun 17, 8:19 PM
    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
    • By kingstreet 12th Jun 17, 7:59 AM
    • 32,080 Posts
    • 17,169 Thanks
    kingstreet
    • #4
    • 12th Jun 17, 7:59 AM
    • #4
    • 12th Jun 17, 7:59 AM
    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Potbellypig
    • By Potbellypig 12th Jun 17, 4:32 PM
    • 126 Posts
    • 57 Thanks
    Potbellypig
    • #5
    • 12th Jun 17, 4:32 PM
    • #5
    • 12th Jun 17, 4:32 PM
    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
    • By kingstreet 12th Jun 17, 4:35 PM
    • 32,080 Posts
    • 17,169 Thanks
    kingstreet
    • #6
    • 12th Jun 17, 4:35 PM
    • #6
    • 12th Jun 17, 4:35 PM
    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.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • smem18
    • By smem18 12th Jun 17, 5:14 PM
    • 29 Posts
    • 9 Thanks
    smem18
    • #7
    • 12th Jun 17, 5:14 PM
    • #7
    • 12th Jun 17, 5:14 PM
    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
    • By Potbellypig 12th Jun 17, 7:56 PM
    • 126 Posts
    • 57 Thanks
    Potbellypig
    • #8
    • 12th Jun 17, 7:56 PM
    • #8
    • 12th Jun 17, 7:56 PM
    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?)
    Originally posted by smem18
    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
    • By peter333 12th Jun 17, 9:19 PM
    • 25 Posts
    • 7 Thanks
    peter333
    • #9
    • 12th Jun 17, 9:19 PM
    • #9
    • 12th Jun 17, 9:19 PM
    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
    • By SuboJvR 12th Jun 17, 10:42 PM
    • 361 Posts
    • 250 Thanks
    SuboJvR
    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
    • By Potbellypig 13th Jun 17, 7:27 AM
    • 126 Posts
    • 57 Thanks
    Potbellypig
    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
    Originally posted by peter333
    Good shout. Thanks.
    • Potbellypig
    • By Potbellypig 13th Jun 17, 7:28 AM
    • 126 Posts
    • 57 Thanks
    Potbellypig
    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.
    Originally posted by SuboJvR
    Thanks. Last night (at 2am in the morning!) I thought about the removal costs and perhaps skip hire for all the junk we've got after 9 years of renting in the same place.
    • SuboJvR
    • By SuboJvR 13th Jun 17, 1:31 PM
    • 361 Posts
    • 250 Thanks
    SuboJvR
    Thanks. Last night (at 2am in the morning!) I thought about the removal costs and perhaps skip hire for all the junk we've got after 9 years of renting in the same place.
    Originally posted by Potbellypig
    I am doing car loads to the big bins at my work :-)

    We're still months away assuming everything happens so little and often is the way to go for us!

    I feel your pain re: the late night thoughts and worries. I think it's getting slightly better, at least my stress-related IBS has calmed down!
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

205Posts Today

1,185Users online

Martin's Twitter
  • RT @LordsEconCom: On Tuesday Martin Lewis, Hannah Morrish & Shakira Martin gave evidence to the Cttee. Read the full transcript here: https?

  • Ta ta for now. Half term's starting, so I'm exchanging my MoneySavingExpert hat for one that says Daddy in big letters. See you in a week.

  • RT @thismorning: Can @MartinSLewis' deals save YOU cash? ???? https://t.co/igbHCwzeiN

  • Follow Martin