Help to buy advice needed

DGW2013

Hi, i'm hoping someone could advise me on my families current situation. Sorry if i go on a bit but i have so much going on that i appreciate being able to put it on here for some advice.

We have found a new house that we would like to buy via the help to buy scheme.

The figures are as follows;

Property list price £250k
Help to buy price £200k

I have £75k coming to me within the next 2 months from my Grandfathers estate.
We have approx £35k equity in our current property which will be sold as soon as we know what is going on with the new house
My Wife has £17k available soon as she is being made redundant.

We have £25k of debt - all unsecured and the majority of which is on payment plans and defaulted as i had to take long term leave off of work after my Wife became unwell with post natal depression after our Son was born. My Son has special needs and needs round the clock care. We have no ccj's.

Our plan is to clear all of the existing debt using the money we will have available out of the £127k. This will then leave us debt free, with £100k to put towards the house.

Our current mortgage is £157k. Our bank have said that we would fail the credit score for the new mortgage of £100k but they may be able to put a business case together to put to the underwriters to show our loan to value is much less than existing, our borrowing would be less and we would be debt free as well as having lower mortgage repayments. I know this is not guaranteed to be approved so we are not banking on it.

My questions are

With the deposit we have, would we still qualify for help to buy ?

Although we really need to move soon (my Son needs a bigger bedroom and we need more storage for all of his health equipment) Are we better off waiting until our credit file has had a few months of no debt showing? Or renting for a year or so?

We need a 4 bedroom property and we cannot afford this (even with a large deposit) without the Help to Buy scheme

Thank you for reading.

Building_Surveyor

i'm not sure whether the help to buy lender(s) deal with people who have adverse history... perhaps someone with some experience will be along to help soon

kingstreet

Get all three of your credit files to a broker so they can see exactly what they are up against. You need to be specific about the entries in your credit history;-

default?
lender?
amount?
date of registration?
reason?

A debt management plan will usually mean no chance of acceptance for a mortgage.

DGW2013

Hi, thank you for the replies.

I've checked my credit file and all defaults are from 2010 and 2011

The amounts of the accounts that are defaulted are

£774 - catalogue
£709 - Natwest overdraft
£326 - Argos card
£1209 - Egg card
£633 - O2 mobile - they charged me the termination fee and defaulted account
£287 - Catalogue
£1218 - Credit Card
£15174 - Natwest loan

All are on repayment arrangements direct with either the lender or the debt collection company.

All were defaulted because we went onto payment arrangements due me being unable to return to work for 8 months due to my family circumstances in my original post. My Son was in hospital 140 miles away at this time and we had two other children at home that needing looking after while my Wife and i took it turns to be at the hospital.

I'm now back at work and have increased all of my repayments back to the original contractual payments to clear them quicker. I will be clearing the Argos card and the smaller catalogue debt in a few weeks time as i have had a ppi claim settled with Santander (just waiting on the money to come in from them)

Thanks

74hotspur

Hi, I have just had approval for the full 20% equity loan on the help to buy scheme, I think that you may have too much funds available to qualify.
I had 5% deposit and only just qualified for affordability, the figures are very strict.
Speak to your local agent.
As there was only one lender Halifax on the scheme up until recently (woolwich are now on board) the lending was really strict, Halifax deemed it high risk and classed it as a 95% ltv although its supposed to be a 75% ltv, less risk to lender. Thankfully woolwich have taken the correct attitude and are deeming it as a 75% ltv as the scheme is supposed to be. I'm sure as more lenders are on board and more competition the mortgages will be competitive.