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help to buy scheme query
joel10873
Posts: 106 Forumite
hi all,
im looking at a help to buy development near to me and just had a question, far as i can work it if we have a 5% deposit the governemtn will put in UP TO 20% of the purchse price then we get a mortgage for the rest. my question is does anyone know the criteria on which they judge how much of that 30% they put in? does it decrease depending on your mortgage amount, for example if after the deposit and the 20% there was a 90k mortgage left to find and we got a 100k mortgage would they reduce their input or do they say if you have more than a 5% deposit they reduce there input down?
just wanted a heads up before i went any firther really. we have quite a large deposit and im wondering if this scheme is the best way to go (we are struggling more with a mortgage than a deposit due to lowish income and being self employed)
im looking at a help to buy development near to me and just had a question, far as i can work it if we have a 5% deposit the governemtn will put in UP TO 20% of the purchse price then we get a mortgage for the rest. my question is does anyone know the criteria on which they judge how much of that 30% they put in? does it decrease depending on your mortgage amount, for example if after the deposit and the 20% there was a 90k mortgage left to find and we got a 100k mortgage would they reduce their input or do they say if you have more than a 5% deposit they reduce there input down?
just wanted a heads up before i went any firther really. we have quite a large deposit and im wondering if this scheme is the best way to go (we are struggling more with a mortgage than a deposit due to lowish income and being self employed)
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Comments
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I think you have got it wrong here.
From my view of this scheme is that the lenders are given protection to lend you a 95% mortgage. So if the house was worth £100k you would need to be able to sustain and obtain a mortgage of £95k.
The help to buy scheme is protection for the lenders, you do not see this money and certainly cannot use it as a deposit.Debt free as of 7.20am on 31st December 2012.
Wow. Feels great :j :beer:0 -
Using help to buy you will be expected to Max out your mortgage. Your Max deposit can be £30k on this scheme, but that is 5% in 600k. If I was you, I would put your 5% in, then take the 20%, and get a 75% mortgage. Try to hide some of your extra deposit money, then pay your mortgage off early.
Your finances will be assessed by a financial adviser, who will work out who puts in what0 -
I think you have got it wrong here.
From my view of this scheme is that the lenders are given protection to lend you a 95% mortgage. So if the house was worth £100k you would need to be able to sustain and obtain a mortgage of £95k.
The help to buy scheme is protection for the lenders, you do not see this money and certainly cannot use it as a deposit.
Wrong, that's the scheme in Jan.0 -
You get HTB equity loan of nil, 10% or 20% depending on your circumstances. The HCA HomeBuy Agent for your area uses a calculator which analyses your circumstances and makes a recommendation. It looks at income, outgoings, deposit, household debt levels, the lot.
If you want a copy of the calculator, PM me your email address and I'll send it on to you.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
thanks for you replies everyone, i was unaware of the deposit cap thats really useful to know0
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orbithomebuyagents.co.uk is the government oneDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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Orbit is the HCA HomeBuy Agent for the Midlands and Eastern England, If you look in the back of the HTB Guide, these is a full list of all the HomeBuy Agents for the whole country;-orbithomebuyagents.co.uk is the government one
http://orbithelptobuy.co.uk/mediaFiles/downloads/66762288/Help%20to%20Buy%20Buyers%20Guide.pdfI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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