Help to Buy Scheme - would this work for me?

Sellurgranny

Hi all,

I've been looking at the Help to Buy Schemes newly available and wonder if there is much of a chance that i could use this to help me in my particular situation........

Following divorce the family home has been transferred into my sole name (Land Registry Deeds). Problem is, my ex-husband is still on the mortgage in name only being that I pay the whole amount and have done for four years.

Currently the house is worth approx £175k with a £95K repayment mortgage with Barclays, approx 15 years left on the term.

Im currently working part-time as I have 3 children, one of whom is at primary therefore my earnings aren't great although I do receive WTC and CTC so my income equates to approx 20k per annum.

I don't have a 5% deposit as £19k is just a pipe dream however there is plenty of equity in the house.

Im just wondering if this scheme could be relevant for me. I can obviously afford the repayments on my current mortgage but Barclays won't consider me (or at least didnt 4 yrs ago when the financial side of the divorce was being sorted out). I can;t see that much will have changed on that front, given my current earnings.

Would dearly love to release my ex-husband from the mortgage for my own peace of mind.

Anyone got any experience in this field who would be willing to answer?

ethank

Hi. Which HTB scheme - New Build Equity Loan or the new Mortgage Guarantee?

You are talking about a deposit of £19k? Are you saying that you want to buy a house that is worth £380k? You probably will not be able to support a mortgage of that level.

If you want to HTB, you need to sell your main property, you can only use HTB for anything other than main residence- as you have £80k of equity in your house, how much would you put down from this?

Sellurgranny

Sorry maybe I wasn't too clear with my original post
.... I just want to remortgage my existing home in my sole name with the mortgage guarantee scheme. im not looking at selling the house. Thanks for your reply though.

Sellurgranny

Sorry maybe I wasn't too clear with my original post
.... I just want to remortgage my existing home in my sole name with the mortgage guarantee scheme. im not looking at selling the house. Thanks for your reply though.

Sellurgranny

Oops I think I made a boob with my calculations it would be a deposit of 4750 as 5% of 95k. I could probably save this over a year.

ethank

I'm not a mortgage advisor however the info I have found says a mortgage eligible for a guarantee under the scheme will need to:

• a residential mortgage, and not buy-to-let;
• taken out by an individual or individuals rather than a housing association or an incorporated company
• the applicant’s sole property with no other interest in any property anywhere in the world. There has to be either a separate borrower declaration to this effect or the lender has to ensure that this question is asked of the borrower(s) as part of the application process;
• on a property in the UK with purchase value of £600,000 or less;
• have a loan-to-value of between 80% and up to and including 95%;
• originated between the dates specified by the scheme (1 January 2014 – 31 December 2016) or is a ‘warehoused’ loan (see section on warehousing below);
• a repayment mortgage, and not interest-only (or part and part, or offset);
• affordable for the borrower as evidenced by an affordability assessment, interest rate stress test and income verification;
• for a borrower who is not credit impaired; and
• is not shared ownership, shared equity or otherwise supported from public funds.

On the basis that you have a LTV of circa 54% - you don't qualify, and why would you need the scheme?

Is there something you are not saying - do you need to buy hubby out? If your property is worth 175k, and you only have 95k left to pay, then you don't need a deposit of 4750 as you have nearly 45% equity?

kingstreet

Sellurgranny wrote: »

wonder if there is much of a chance that i could use this to help me in my particular situation

No. Totally irrelevant.

This is for buyers with little deposit.

Your problem is income/affordability and is the same if you are buying, or remortgaging. As you say, you have plenty of equity, so a "deposit" is not your issue.

The only way your former partner could be released is if you have the income to justify the borrowing to your current, or a new lender.

Sellurgranny

Ok thanks for clarifying that - it was just a thought and obviously not a scheme that is suitable for me now that you've explained my situation to me!