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  • FIRST POST
    • dhokes
    • By dhokes 7th Dec 17, 6:39 PM
    • 120Posts
    • 12Thanks
    dhokes
    HTB equity loan and mortgage lenders
    • #1
    • 7th Dec 17, 6:39 PM
    HTB equity loan and mortgage lenders 7th Dec 17 at 6:39 PM
    I'm a FTB in the process of buying a house using the HTB equity loan. Using a mortgage broker (a national company), I've managed to get a mortgage offer, searches have been completed and I'm waiting to sign contracts.

    1. I was wondering whether mortgage lenders treat the HTB equity loan the same/similar to shared ownership?

    The mortgage offer states:

    "We are making this mortgage offer under an equity-sharing scheme. On completion you will have 88.00% of the equity. The interest in the property that the other person or body sharing in the equity has under the scheme will be protected by the scheme documents......."

    My solicitor believes the mortgage offer (according to the HCA) needs to refer to the second charge to be secured on the property and it must state that it is in favour of the HCA and not Orbit. He also believes the lender may have picked the wrong mortgage offer type as it includes lots of extraneous material relating to shared equity schemes, whereas my purchase isn't a typical shared equity purchase.

    2. I was wondering whether this sounds reasonable?

    I'm not sure who's correct though my mortgage advisor seemed pretty knowledgeable when communicated with him and I'm sure he's processed a few HTB mortgage applications, whereas my solicitor sounds like he's not that familiar with HTB purchases.

    3. I mainly interested in your thoughts/is there anything I can do?
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