New Build, Help to Buy incentives

lord_tyrannus

evieeve wrote: »

We're buying a Barratt new build with HTB in Derby and they said they couldn't lower the price due ot HTB already being a big incentive? instead they are giving us EA fees and all the flooring.
However the mortgage valaution has come in 15k lower than the price, so now we're having to wait for a second valuation! Barratt refuse to consider lowering it until the 2nd valuation is done.

Barrett took the same line with me about how help to buy is a incentive. Then it changed to they don't give discounts on new builds. then finally the government didn't allow incentives on help to buy. We walked away in the end

I've just found out after being consistently told that they couldn't pay for stamp duty on help to buy infact nationwide do allow the developer to pay for it

dgtazzman

Not being allowed to pay stamp duty is rubbish, Barratt's agreed to pay it on ours.

We're buying one of the last houses of the Soleil Mews development in Northampton.

I consider the house to be worth the asking price, but there is only 1 other house like it on the entire development and that was built 2 years ago (I haven't been able to find the actual price paid for that one at the time). Other 3 bed houses are 10k-15k cheaper, but ours has more floor space than the 4 bed houses (it is 1362 square feet). I'm just slightly worried the valuation will just look at it being more expensive than houses in the area with the same number of bedrooms. I know in the end Barratt's will have to drop the price if that happens and I win, or they refuse and I'll have to walk away, something I really don't want to consider as we really want this house, but I'm not going to generate an extra 10k in cash overnight...

ging84

evieeve wrote: »

We're buying a Barratt new build with HTB in Derby and they said they couldn't lower the price due ot HTB already being a big incentive? instead they are giving us EA fees and all the flooring.
However the mortgage valaution has come in 15k lower than the price, so now we're having to wait for a second valuation! Barratt refuse to consider lowering it until the 2nd valuation is done.

Personally i would tell them to drop the 15k or you walk
forget the 2nd valuation, even if they're paying for it.
You have had an expert tell you it's over valued, take his advice

ethank

lord_tyrannus wrote: »

I've just found out after being consistently told that they couldn't pay for stamp duty on help to buy infact nationwide do allow the developer to pay for it

Whilst the mortgage company will accept it, I was told that the Help to Buy Agent are instructed not to allow it as it is classed as a cashback offer. You are not allowed to receive cashback using Help to Buy. If your developer agrees to Stamp Duty paid, they have to reduce the house price by the amount of the Stamp Duty to allow it to proceed.

JPB123

ethank wrote: »

Whilst the mortgage company will accept it, I was told that the Help to Buy Agent are instructed not to allow it as it is classed as a cashback offer. You are not allowed to receive cashback using Help to Buy. If your developer agrees to Stamp Duty paid, they have to reduce the house price by the amount of the Stamp Duty to allow it to proceed.

Not true. As long as it's declared on the CML form, and the lender will accept it subject to their criteria, it's fine.

I am an Independent Mortgage Advisor

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

ging84

my help to buy application showed a section specifically for cash back, separately to the general incentives section, i was told stamp duty paid is classed as cash back

ethank

JPB123 wrote: »

Not true. As long as it's declared on the CML form, and the lender will accept it subject to their criteria, it's fine.

Note your response, but I assure you that it happened in my case. My house developer had to reissue my Property Reservation form with a reduction in price rather than showing a stamp duty paid so it would go through.