What is classed as a 'new build' for help to buy scheme

Daniyella

I know this sounds like a daft question but its confused me a little bit, we have lived in our house for 3 years, we are renting it off the developer as he hasnt managed to sell them all yet (ours is the last one to be sold) we are considering buying it i had a chat with a Lloyds Bank mortgage advisor and he had a look at his manual and said that according to his info we would be entitled to the help to buy equity scheme as we are the first people buying the property, anyone else heard of this or have any info on it?

kingstreet

I've spoken to Orbit the HCA HomeBuy Agent for our area and they would not accept an HTB application.

Many lenders would class such a property as newbuild, but it won't be by the ones who provide the actual equity loan.

Feel free to suss out your local HCA HomeBuy Agent and get it from the horse's mouth;-

http://www.helptobuy.org.uk/find-your-local-help-to-buy-agent/

FWIW if you buy at a discount, Halifax will allow you to treat the discount as part of your deposit.

kingstreet

FYI this is a list of lenders we normally use for newbuild and their attitude to your situation;-

Skipton

No longer classed as newbuild

Halifax

Still treated as newbuild, with maximum LTV of 80%, as not yet owner occupied

Nationwide

If the developer still owns them, they have never been sold on or changed hands and are still within 2 years of being newly constructed then they would be treated as new build. (85% max on houses, 75% max on flats)

If the properties were constructed more than 2 years ago, it would be second hand property.

Santander

No longer newbuild, once occupied

Principality

Cease being treated as newbuild once twelve months old

Daniyella

hi kingstreet, with the halifax ill be taking a 75%LTV for the help to buy is that correct?

kingstreet

But you won't get Help To Buy?

This is not a lender decision, it's the decision of the HCA HomeBuy Agent. Do not believe what Lloyds is telling you without checking with the body with the Government contract to administer HTB in your area.

In general, if you get a 20% equity loan and put down 5% deposit then simple maths suggests you'll require a 75% mortgage.

Daniyella

i see what your saying ill ring around on monday, thanks

kingstreet

Ring around?

There's only one HCA HomeBuy Agent for your area. The builder also has to be HCA registered to offer HTB.

Did you use the map link I provided, so you could establish yours and obtain their contact details?

Daniyella

ok thanks, looks like ill be using the HTB mortgage guarantee instead