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Help to buy - mortgage guarantee?
Oldoldslowhand
Posts: 2 Newbie
I'm considering if this option works for me, and for me the one piece that I really need to understand is what rates will the mortgage provide offer?
Will it be the 95% LTV rates, as I would only be providing 5% equity, or will I get something closer to the 75% LTV rates, as I have provided 5% equity and a further 20% is secured elsewhere by the government?
I'm sure this is an obvious answer - but I'm a touch confused?
Will it be the 95% LTV rates, as I would only be providing 5% equity, or will I get something closer to the 75% LTV rates, as I have provided 5% equity and a further 20% is secured elsewhere by the government?
I'm sure this is an obvious answer - but I'm a touch confused?
0
Comments
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No way to know what products will be offered, but as this is rebranded NewBuy, it's possible the NewBuy rates offered now may be broadly similar.
The guarantee is for upto 15%, from 80% upto 95%.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 -
Ok thanks. But am I right in thinking that conceptually the mortgage providers are carrying less risk than with an out and out 95% product, so you would expect better pricing?0
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Yes, the same as NewBuy.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
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Oldoldslowhand wrote: »Ok thanks. But am I right in thinking that conceptually the mortgage providers are carrying less risk than with an out and out 95% product, so you would expect better pricing?
The Government one suspects wil be looking for a premium to underwrite the guarantee it will be offering. So this may be embedded into the interest charge on the product, i.e. collected by the lender then remitted to the Treasury.0
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