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Help to buy scheme
w00519772
Posts: 1,297 Forumite
Do people use the help to buy scheme if they have higher deposits eg 20%-30%?
I am not asking for the benefits and limitations of this scheme as I know this. I am asking if I should seriously consider the scheme with a 20% deposit.
I am not asking for the benefits and limitations of this scheme as I know this. I am asking if I should seriously consider the scheme with a 20% deposit.
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Comments
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Hi
Are you referring the up to 20% interest free deposit (for first five years) aspect of Help To Buy?
We're currently utilising this scheme. My understanding is that your contribution (deposit from savings) has to be at least 5% but it can be much more.
Our local homebuy agent has an affordability criteria spreadsheet on their website and you can enter in your details to see if you are likely to qualify. Apparently, they will be looking for you mortgage payments to be between a certain percentage of your take home earnings whilst considering the level of debt that you have. I think you may be able to get an equity loan whilst contributing a higher deposit provided that they consider that you could not reasonably afford a mortgage without the loan. My local homebuy agent is My4Walls perhaps you could enter your details on the spreadsheet on their website? If nothing turns red then I was told it may well be approved (mine didn't and I was).
Hope this helps.:)0 -
The mortgage has to be at least 25% of the purchase price, the income multiple allowed is upto 4.5x and the debt to income ratio no more than 45%.
Provided it fits, you should be ok. If it looks as if you need less help, you may only be given 10%.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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