Help to buy - Orbit

Harry_Hills

Hi guys, so I am planning on getting a mortgage, on the help to buy scheme. I have to go with natwest as Halifax have said they wanted 15% from me instead of the 5%.

The broker has said that they are going to submit a FULL application instead of getting an agreement in principal, before they can do this, they have sent off my applicant to Orbit where they'll look at my application, then approve it, once that is approved, they will go in with the full application.

My question really is, once orbit have approved the application, should I have any difficulties of getting a mortgage offer from natwest via the help to buy scheme. Affordability I meet their criteria. 28k a year, 150k house, 7,5k deposit, 31,000 from the government. = 112,500 mortgage required.

Also, does anyone know how fast Natwest are currently with approving/declining and getting valuations done? Are the natwest underwriters strict?

Nothing negative on credit file, just a 7 searches in 12 months. Low credit usage.

many thanks.

kingstreet

The HTB application to Orbit and the mortgage application are completely unrelated. There is no way of knowing if you will be accepted by NatWest and nothing which happens at Orbit will make any difference to that.

Harry_Hills

kingstreet wrote: »

The HTB application to Orbit and the mortgage application are completely unrelated. There is no way of knowing if you will be accepted by NatWest and nothing which happens at Orbit will make any difference to that.

I am new to house buying, apologies. So can my application with orbit be rejected? Can i still proceed with full app regardless of outcome from orbit?

kingstreet

You make an application to Orbit - it is simply formed by combining the reservation form and property information form. You will normally be accepted as long as your income and outgoings fit within the HTB affordability calculator. Depending on the details input you can be granted a 20% equity loan, a 10% equity loan or nil equity loan if the calculator thinks you don't need help or the proposition is considered unaffordable for you.

You can re-apply with other details if you think the information was incorrect, or a different property will improve your chances.

You can proceed with a mortgage application if you like, but if you apply for a 75% mortgage and don't have the 20% equity loan, is there any point?

Harry_Hills

kingstreet wrote: »

You make an application to Orbit - it is simply formed by combining the reservation form and property information form. You will normally be accepted as long as your income and outgoings fit within the HTB affordability calculator. Depending on the details input you can be granted a 20% equity loan, a 10% equity loan or nil equity loan if the calculator thinks you don't need help or the proposition is considered unaffordable for you.

You can re-apply with other details if you think the information was incorrect, or a different property will improve your chances.

You can proceed with a mortgage application if you like, but if you apply for a 75% mortgage and don't have the 20% equity loan, is there any point?

Many thanks for this! It's crucial I get accepted due to the fact I will not be able to stump up an extra 30,000. App submmited late wensday, I';m hoping I get good news on friday.

74hotspur

Nationwide are now accepting applications, better deal than halifax, natwest and woolwich. Is your broker whole of market? have they suggested nationwide? If not I would consider changing broker!! it's nearly 1% better rate!!

Harry_Hills

74hotspur wrote: »

Nationwide are now accepting applications, better deal than halifax, natwest and woolwich. Is your broker whole of market? have they suggested nationwide? If not I would consider changing broker!! it's nearly 1% better rate!!

I believe my broker deals the wider market, but tbh, I'm going for the natwest fixed 5 year rate of 3.59%

Noddy32

I'm using HTB and personally have gone for a 2 year fix with a view to overpaying as much as possible within 10% limit, then remortgaging after 2 years to buy back 10% from the government. Then do the same over the next 2 years. Thus hopefully buying back the 20% before house prices increase, assuming they will eventually....

amnblog

74hotspur wrote: »

Nationwide are now accepting applications, better deal than halifax, natwest and woolwich. Is your broker whole of market? have they suggested nationwide? If not I would consider changing broker!! it's nearly 1% better rate!!

To be fair Nationwide have only been in the market two days. :cool: