HTB query

newbridge

Hi,
I am first-time buyer, trying to get onto property ladder since last year. Having wanted some specific features in the property couldnt find the right one in the area we want to live in. Prices have gone high by around 15k for similar houses!!. So thinking of using the HTB scheme.
I was given max £147000 AIP last year with a 10% deposit with my £30kp/a salary. Which would allow me to buy a property of upto £161,000.

1) I know, that for shared-equity, govt loans 20% deposit so allowing me to buy an expensive property.
i.e 7350(my deposit) + 29400(loan) + 147000 = 183,750

Do i do same calculation for HTB guarantee scheme, since that is my 1st priority. Would be helpful if any experts on here can shed some light.

I would be going to a bank/broker soon, but wanted to understand the scheme properly. Thanks in advance.

kingstreet

There is no equity loan on HTB - MG, so all you get is what's affordable based on your income and this may be lower at 95% than it would be at 90%;-

http://yournews-legalandgeneral.com/pv_obj_cache/pv_obj_id_BB320F8298FC1120B8826B44DE0AD12E294C0800/filename/Help%20to%20Buy%20Definition%20Budget%202013.pdf

newbridge

thanks Kingstreet, that makes more sense to me now. So i will have to go for shared equity mortgages in order to access higher value homes.

kingstreet

Basically, you're going to have to buy a newbuild, if you want shared equity.

If you live in Scotland, the LIFT scheme provides an equity loan on a second-hand property, if you qualify.