First Time Buyer/Help to Buy Advice

TFUNK

My wife and I are currently looking at buying a new build home using the help to buy scheme and we're looking for some advice on a few things. We're first time buyers, never looked into mortgages or buying a house before so although we're learning this is all very new to us so be gentle....

First of all the house we like is from Keepmoat. After speaking to them about things like mortgages and solicitors they obviously had their own (strongly) recommended company's that they would like us to deal with. I was ready to reject them out right but Keepmoat seem to think that not using their recommended company's will give us loads of problems because we're on the HTB scheme. I humoured them a little and spoke to New Homes Mortgage Services who did a search and gave me some figures - 3.19% fixed for 2yrs then 3.99% variable, £999 arrangement fee. What I found a little odd is they wouldn't tell me who that mortgage would be with only that that is the best deal I can get, again because we're using HTB. I searched for 5 minutes on the internet and found 2 banks with better deals who both apparently will accept HTB. Has anyone here used this scheme and arranged their own mortgage? Is it really the nightmare Keepmoat are making out?

As for the solicitor I don't actually understand why I shouldn't use the one they recommend. For the mortgage I want to get the best deal I can so I'm going to shop around, with the solicitor provided the fee's are fair then surely one's just as good as another? Keepmoat seem to think this is another point which could cause us headaches but have said that using their solicitor will speed up the whole process and save us from having to chase. I've read that you should always use your own solicitor as using a recommened one would cause a conflict of interest for the solicitor - sorry for sounding naive - but lets say the solicitor was biased towards the home builder in some way, in what way could that cause us problems?

One final thing is when viewing the house I had in my mind that I wanted to negotiate the price a little (after reading threads on this forum from others that have bought new builds). Pretty much strait away they've dangled the carrot of free carpets/flooring for the whole house and all white goods but I sort of expected that. When I started on the subject of the price they more or less said that because of the HTB scheme they aren't able to reduce the asking price at all. Anyone know if it's worth pushing them on this or are they unlikely to move on price because of HTB?

Thanks in advance everyone.

kingstreet

The deal is Halifax. 3.19% with £999 fee or 3.59% with no fee.

If buying between £125k and £250k you also get 1% of your purchase price as a cashback to defray the cost of stamp duty if you are a FTB.

So far, there's only Halifax and Woolwich, with Teachers Building Society, if you are one and Chorley BS due to sign up soon, apparently.

TFUNK

kingstreet wrote: »

The deal is Halifax. 3.19% with £999 fee or 3.59% with no fee.

That's exactly it! I was wondering if it was Halifax as they seem to be the lender that everyone talks about in connection with HTB. It looks like if I go to Halifax directly I can get a better rate though - 2.69% for 2 yrs with £995 fee.

brit1234

Do you have to go Help to Buy or can you buy normally?

Do you understand the Help to Buy scheme and are you aware of any pitfalls?

TFUNK

Unfortunately we do need the help to buy. That's something which I'm happy to say I do understand and yes I'm aware of the pitfalls.

lookingtobuy

TFUNK wrote: »

That's exactly it! I was wondering if it was Halifax as they seem to be the lender that everyone talks about in connection with HTB. It looks like if I go to Halifax directly I can get a better rate though - 2.69% for 2 yrs with £995 fee.

I don't think product applies to a HTB funded mortgage, to get this rate I think you have to fund your own deposit completely.

I believe the rate Halifax offer for HTB is the one you have been quoted already

kingstreet

Halifax Help To Buy is a special product from the "Affordable Housing" range. You can't do shared equity on a standard product. NatWest has joined the HTB panel now. Rates about the same as Halifax, but no 1% of PP cashback for FTBs £125k to £250k.

TFUNK

Thanks everyone it's starting to make sense now. I've contacted a couple of independent whole of market brokers and I'm due to speak to Halifax direct as they seem to be the one that both brokers are quoting me for.

Would anyone care to comment over the solicitor? Again I know we're being a bit naive but as long as the fee's are fair I can't think of a reason not to use their recommended solicitor.