Help to buy scheme. Maximum deposit size

funkyfin2000

So we are doing this at present with HTB Equity so very pertinent.

We are putting in 15% (as this is the equity we have in our current property plus some money left for Options/Solicitor fees - the developer is paying SD)

The government is then putting in 10%....this is realistic for me, it's only £30k from the government and if I get the mortgage right, in 5 years time we should be a position to roll the loan back into the mortgage with a fairly decent LTV (I believe this is called Staircasing)

Is that right Kingstreet, I think I'm on the right path! Sorry to Hijack but hopefully the information on what we are trying to do is useful to the OP.

kingstreet

You are going to find a way to repay your equity loan by remortgaging before the "fees" start in year six?

Admirable.

Just bear in mind 1.75% in year six may be less than the going mortgage rate at the time as that will apply to the whole mortgage, not just the bit you've repaid.

funkyfin2000

You make a good point, clearly, we will look at it and see if it's worth it, it may well be better to pay the interest from year 6 dependent on what the mortgage rates are doing at the time. We may also have inheritance etc by that time which allow us to pay it off at the market value of the house at that point.

The mortgage I'm looking at currently with Natwest is a 3.15% for 5yrs taking us upto that 6yr point.

kingstreet

funkyfin2000 wrote: »

The mortgage I'm looking at currently with Natwest is a 3.15% for 5yrs taking us upto that 6yr point.

Why? That rate isn't great.

There are better HTB - EL options.

funkyfin2000

Restricted on Bank due to Childcare issues - therefore dictated by what Natwest can offer at present. Could take 2yr at 2.51%

kingstreet

Ah well.

Shat happens.

funkyfin2000

Indeed - or we wait and look again later on down the road when childcare issues are a thing of the past!