Help to Buy mortgage scheme

Dovah_diva

Can you use the Help to Buy scheme to buy a HA house under the RTA?

kingstreet

Dovah_diva wrote: »

Can you use the Help to Buy scheme to buy a HA house under the RTA?

If you have a right to acquire discount, why would you need a HTB mortgage?

Dovah_diva

kingstreet wrote: »

If you have a right to acquire discount, why would you need a HTB mortgage?

Because the maximum RTA discount is only £16k. As we live in an expensive outer London borough, the house is still too expensive for us. I suspect that one won't be able to use both schemes, but thought it would be good to check.

kingstreet

What's the purchase price and the accompanying loan to value?

There are other 95% schemes as well as Help To Buy - Mortgage Guarantee and the rates are broadly comparable. I can't see any reason why you wouldn't be able to use HTB - MG, although I think you may be overestimating its usefulness to you.

Dovah_diva

kingstreet wrote: »

What's the purchase price and the accompanying loan to value?

There are other 95% schemes as well as Help To Buy - Mortgage Guarantee and the rates are broadly comparable. I can't see any reason why you wouldn't be able to use HTB - MG, although I think you may be overestimating its usefulness to you.

The valuation is £250k and I'd need to get a mortgage for £229k as I'd get a discount of £16k and have £5k saved. I'm not sure what that makes the LTV%.

Think I may have to do some research, but I suspect I will continue renting for a while.

kingstreet

£229k divided by £250k = 91.6% LTV.

You need money for legal fees and stamp duty (about £4k) on top of your deposit. Talk to a whole market mortgage broker about your options.

I haven't done an RTA case, but on RTB plenty of lenders will lend upto 100% of the discounted purchase price, with the discount being your only deposit.

You need to be able to justify the amount you need to borrow as well. For a £229k mortgage over 30 years, you need an income of about £47k with no other credit commitments, high outgoings or dependents. Use lenders' online affordability calculators to see if you can actually borrow the amount you would need.

Dovah_diva

Thanks, Kingstreet, that is really helpful. Lots to think about

leongant

Hello there
I hope someone can help me. I am currently looking at selling my home. I bought it 3 years ago under a help to buy scheme ran by the people who I bought the propety off. I currenlty owe them 15% intrest free for 10 years or when I sell the property. My question is this if I seek my house for 100k but have 87k left on the mortgage that gets paid of first and the company recieves the remaining 13k but this does not equate to 15% does this matter. Will they accept that or will they still hold me to the further 2k I owe them
Any help will be greatly received.

Thanks

kingstreet

It's usually based on the value of the property.

If the property sells for less, you pay them less, 15% of the sale price.

leongant

Thanks for the reply. That makes sense. Only thing confusing me is that my mortgage advisor said as there loan is a second charge they get the remaining amount after the sale. As my above example if sold it for 100k the mortgage is a first charge so they get 87k and the seconge charge gets the 13 but this is only 13 percent so I'm presumeing they would still want me to pay the further 2k to them as that would make the 15% not just accept the 13k as that's what left.

Hope this makes sense

Thanks