FTB Help to Buy..advice needed

swanny_78

I'm sure all you experts gets miffed with the same repeat questions but here goes anyway

I am looking to buy a new build family home 4-5 beds approx. £249,995
I have a 5% deposit and looking to take up the chance of a Help to Buy Government funded boost to my deposit of another 20%
Thus LTV of 75%.
My Salary is £74000 a year with a non guaranteed 10% bonus
I have about £14k of CC Debt (No late Payments or CCJ etc.. (All Green)
My Credit Scores are:
Experian : 834 (Fair) Mainly due to above debt eg
The usage of your available credit indicates a higher risk - however payments are easily affordable and I don't use them anymore after closing all of the accounts so its only going down. (still active on credit history until balance is zero'ed)
Equifax : 819 Incorrectly low due to an account showing 2 late payments 1 at start of BT contract and one at the end. I think it must be the way that account was handled on BT side when they opened and closed the account (I have disputed it)
CallCredit: 867 No negative factors

The house I'm looking to but is with Perveril homes and they insist on using their broker and solicitor (I assume this is normal). The mortgages are done thru Halifax as they deal with them and the Help to Buy Scheme...etc

So long story short, what are the chances of gettimg a 75% LTV Help to Buy Mortgage with the above facts???

Over to you guys...:beer:

swanny_78

Sorry also should have mentioned my wife works irregular hours as a teacher so maybe gets 300 - 800 pcm depending on workload, we can not guarantee the salary tho. I also have 3 dependant children.

Building_Surveyor

74k a year?? is it not a option for you to save more than 5%?

From a personal perspective i think you'd be mad to go on such a scheme on that salary. Any particular reason why you are going for this?

by 3 dependent children do you mean they live you with as you didnt say 'we have 3 dependent children' or you pay maintenance for?

in terms of late payments you will need to list dates for anyone to give you decent advice.

Thrugelmir

£14k of debt. Only affordable as long as you have a job and don't end up getting divorced. .

As a lender you would therefore register as being high risk.

swanny_78

Building_Surveyor wrote: »

74k a year?? is it not a option for you to save more than 5%?

From a personal perspective i think you'd be mad to go on such a scheme on that salary. Any particular reason why you are going for this?

by 3 dependent children do you mean they live you with as you didnt say 'we have 3 dependent children' or you pay maintenance for?

in terms of late payments you will need to list dates for anyone to give you decent advice.

tx for the quick response. I have only recently started earning that salary (promotion at work). The dilemma is do i wait and save more of a deposit for another 3-4 years. Or start paying a mortgage off immediatly with an interest free loan to gain a higher deposit.

yes children live with me and my wife ( they are ours :rotfl:).
late payments are showing but they are incorrect, first from 2006 and other 2011. Both in dispute.

swanny_78

:cool::cool::cool:

Thrugelmir wrote: »

£14k of debt. Only affordable as long as you have a job and don't end up getting divorced. .

As a lender you would therefore register as being high risk.

yes assuming i keep my job and wife they are affordable of course. Surly that's the same for any debt including a mortgage. If they all thought like that they would not lend to anyone. For what its worth I've been employed by same company for 13 years and married happily for 10

swanny_78

So should I wait and pay my cards off and raise my own deposit....may take a while. Or go ahead and run the risk of being declined by Halifax. Im not sure how strict they are for 75% help to buy mortgages in regards credit scoring.

Part of me thinks I bite the bullet and get on the property ladder asap, and continue to pay cards off in the background, other part thinks hold off and pay them off first then look ensuring my credit score is as high as it can be and not et refused.

Again any advice would be welcome.

TMC35

swanny_78 wrote: »

So should I wait and pay my cards off and raise my own deposit....may take a while. Or go ahead and run the risk of being declined by Halifax. Im not sure how strict they are for 75% help to buy mortgages in regards credit scoring.

Part of me thinks I bite the bullet and get on the property ladder asap, and continue to pay cards off in the background, other part thinks hold off and pay them off first then look ensuring my credit score is as high as it can be and not et refused.

Again any advice would be welcome.

My personal opinion would be to wait and get together at least a 10% deposit and pay off your debt whilst doing this. On £74k a year, if you are sensible and cut back on whatever you can surely this wouldn't take you too long if the houses you are looking at are less than £200k.

I understand why you want to get on the property ladder now, I am in exactly the same situation myself and have also looked at the help to buy scheme but have decided to be patient and get our 10% saved and do it on our own.

My reasons for this are that I feel new buy houses are overpriced and where there has been so much interest in the HTB scheme in my area the builders don't seem to want to negotiate so much on the price. It's so hard to save up the sums of money these days, I want to get a house I have more potential to make money on...

But the biggest thing that put me off is that I don't feel HTB really solves the problem long term as somewhere down the line you have to pay back the equity loan and this is where I would worry too much.... I personally feel it's much better to buy a house you know you can afford now and at the end of the mortgage you own it outright and don't have the worry of finding 20% of the value or have to sell up and downsize but with no gain to yourselves..

As I say just my personal opinion... where I live you can get a pre-owned 3 bed for under £250k but for a new build over £250k so we'd have the 3% stamp duty on top too which really put us off too!

You just need to do what is best for your family but with the mortgage guarantee scheme coming in next year you might find that helps you if you carry on saving for the rest of this year and then re-look at it then.....:)

Building_Surveyor

personally if i were you i would focus on paying the credit card debt down first. you should be able to clear a couple of hundred a month if you cut back. - unless there's any reason why you need to move asap, where are you living now?

i can only speculate by saying a 10% deposit should be achievable on your salary - but without knowing your outgoings, purely an assumption.

swanny_78

Thank you all for your feedback guys. I think paying off cards is probably the sensible thing to do. (Unless I can get home builders to pay deposit and use my deposit to pay my cards off) ;-)

Yorkie1

swanny_78 wrote: »

tx for the quick response. I have only recently started earning that salary (promotion at work). The dilemma is do i wait and save more of a deposit for another 3-4 years. Or start paying a mortgage off immediatly with an interest free loan to gain a higher deposit.

Unless you're actually referring to the formal scheme, you do realise that you can't use a loan to fund a deposit?