Help to Buy Mortgage?

gazzer82

Hello Moneysaving people

Myself and my wife had been diligently saving for the last year for a mortgage deposit, which we had finally managed to do. However i have recently taken a new job, which came with a relocation to a much more expensive area to live.

So, at the moment we're still renting. However given the announcement of the new "Help to Buy" scheme we have been tempted to look again at buying. We have enough money for a 5% deposit, so if we looked at an eligible new build we would only need at a 75% mortgage, i think?

That's what i am not really clear on, i assume the 20% would go direct to the developer and we would pay the remaining 5% and the mortgage company the 75%? If so, do i need to find a specialist mortgage, which will accept the "Help to Buy" scheme, or, can i just get any standard mortgage? I am with First Direct for banking and there mortgage rates look very competitive, but they don't seem to like most of the shared equity schemes?

Sorry, this may be a rather stupid question, i will also be seeking a mortgage advisor at some point anyway as my wife is "Self Employed" so there are some additional complication.

Thanks in advance for the help as always!

Gareth

kingstreet

Being self-employed is not an issue. As long as she has two years accounts, or more, or the equivalent HMRC SA302s to evidence her income, she'll be fine.

HSBC Group does not lend on shared equity, so you'll have to find someone else. As HTB is replacing FirstBuy, look at lenders who will lend on the FirstBuy scheme.

Those that do will specifically mention the products which can be used for shared equity cases.

gazzer82

Hi Kingstreet,

Ok, thanks for your reply, that's kinda what i thought!

I shall take a look for a company that specifies FirstBuy, though in my initial searching on google it's actually quite hard to find them, i have only found Halifax, any other suggestions?

Also, i was trying to find someone who would do a cursory online "Mortgage Promise" so i can check our initial eligibility, do these not exist any more as i have also failed to find that!

My google foo is not strong with me today

Thanks!

Gareth

kingstreet

Let's just say the ones you expect to have some of the best rates, HSBC/FD, LTSB, Co-Op, Post Office, Santander/Abbey, YBS don't accept shared equity.

gazzer82

Well helpfully after all that Crest Nicholson have just informed us that they will only be looking at this scheme for apartments on the development we have been looking at. So looks like all the P.R was b.s, access to properties up to £600,000 at industries lowest rates . . .

What I don't really understand is what the issue to the developer is with offering this to all properties? To my understanding there are no financial differences other than an insignificant admins cost ?

Am I missing something?

CrispyUK

I thought one of the conditions of the scheme was the participating builders have to offer it on ALL properties that come in under £600k and they couldn't be selective about which plots were included.