Strange Mortgage situation, please help!

FTBSOS

Thrugelmir wrote: »

Not at all. For all intents and purposes the scheme is still a 95% mortgage. So applicants must meet all the criteria to qualify. The deferred 20% has to be repaid as well. After 5 years mortgage repayments will increase noticably. Lenders will be looking for applicants to meet this afforability requirement comfortably.

I just don't think banks should see it as a 95% mortgage. Ok, the gov will stump up 20% so it should be classed as a 75% mortgage.

I am just going to be really upset if it doesn't work out. This scheme really helps in getting on the ladder and if I don't buy this year, you can for sure know the housing bubble will grow and house prices will inflate to crazy levels.

somethingcorporate

FTBSOS wrote: »

I need to exchange by thr 10th of april. AAAHAHHHHHHH!!!!

What year?

it's 16th May today...

FTBSOS

Dave_Ham wrote: »

Natwest are typically not as flexible as Halifax, so you need to be careful and have never heard that they want to send someone out.

I am nervous of the involvement of any new build as some of their communication and tactics are certainly not in your interest. The date is not as important as they make them up, if you are using their broker, their solicitors on their terms; expect to stay there.

Good luck

Many thanks, yep using the the builders brokers and their solictiors so hope everything should be fine should I get the go ahead and the exchange deadline passes.

I should be able to get the mortgage with halifax, but I need another £17,500. I am unfortunate that I don't have any family members who can lend me this.

I'm going to keep positive and pray for the best, but god, I will be down for a couple of months if it goes pear shaped.

FTBSOS

somethingcorporate wrote: »

What year?

it's 16th May today...

:rotfl::rotfl::rotfl::rotfl::rotfl::rotfl:

Sorry, JUUUUUUNNEEEE I MEANT! :beer:

FTBSOS

So it's not a Representative from natwest who are coming, it's a newbuy agent, who will get the required documents and submit the application.

If accepted, 3.59% and £1500 stamp duty. Can the stamp duty be added onto the mortgage?

Thrugelmir

FTBSOS wrote: »

I just don't think banks should see it as a 95% mortgage. Ok, the gov will stump up 20% so it should be classed as a 75% mortgage.

Doesn't matter what you think. The banks set the rules for lending. So the sooner you understand the way the world of finance works the better. As it will enable you to obtain a mortgage. Work with the system not against it. As you won't win.

Yorkie1

FTBSOS wrote: »

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If accepted, 3.59% and £1500 stamp duty. Can the stamp duty be added onto the mortgage?

No, unfortunately it can't. Your solicitor will require you to pay it to them before completion, so that they can pay HMRC after completion.

dgtazzman

I might be totally wrong here, but from what it says on the website of the company doing the Help To Buy Scheme in our area, you have to go through the builders to get onto it, not through one of the participating banks.

They have a form on there to print out and take along to be presented and filled out by the builders and then returned to the company that runs the scheme by the builders.

Maybe this has something to do with your issues?

Like I said, could be completely wrong, the information on the site in question is a bit lacking...

74hotspur

If you can find another 17.5k for the Halifax you will only qualify for 10% from help to buy, the scheme is not there to reduce your mortgage amount. it's a no win situation with Halifax, try woolwich they treat it as it should be....75% mortgage, I too was in the same situation with Halifax. Agent deemed it affordable using 4.5x income Halifax wouldn't do 4.5x so it was flawed. Lenders and agents should be working off of the same affordability checks.

brit1234

74hotspur wrote: »

Agent deemed it affordable using 4.5x income Halifax wouldn't do 4.5x so it was flawed.

Your agent is trying to sell houses, your bank wants to know if you can pay it back. Both have different interests. Your agent doesn't care if mortgage rates go up in the future.

FTBSOS wrote: »

I just don't think banks should see it as a 95% mortgage. Ok, the gov will stump up 20% so it should be classed as a 75% mortgage.

Why you are a far higher risk than someone who has saved a 25% deposit and you still have to pay the 20% on top.

FTBSOS wrote: »

Can the stamp duty be added onto the mortgage?

It sounds like you need to go away and save some more. It is for this reason it is unfair to to treat you the same as someone who has saved up a 25% deposit and fees/stamp duty.

I personally think schemes like this are subprime lending which target the naive into buying overpriced newbuilds. These schemes often have financially dangerous consequences such as instant negative equity.