95% mortgage with HTB, but have other investments

EpsilonVaz

Hello, I was wondering if I could possibly get some advice.

I am planning to apply for a 95% mortgage with the HTB scheme, with the 20% from the government.

For example, I would put down a £25k deposit for a £450k house. That's ok and for arguments sake the monthly repayments are affordable to me.

But, I have another account overseas with around £50k in it, this is a forex trading account, so the balance is constantly being traded.

Would it be an advantage or disadvantage to mention this account to the lender? Would they think "well you should put more deposit down" or will they think "he has a back up financial source in case something bad were to happen, ie, unemployment".

I will not be taking money out of the trading account as I worked hard to make that grow, and still work on it. It is not however my occupation, I am employed full time PAYE by another company. I also have BAYE shares of around £10k that I will not be selling as I haven't held them for 5 years yet.

Thank you!

ethank

I wasn't asked how much deposit I had to put down. I just demonstrated that I had 5% and what the source of the deposit was.

Are you buying a new build or resale property - The 20% stake only applies to new builds. The thing I would say is that you will at some point have to pay the stake back. Having HTB means that there are more hoops to jump through when you remortgage or sell, and you will not be able to take any equity out of your property (such your house appreciate in value) until the Homes & Community Agency have their money out (and if the house goes up in value, so does their stake)

If you want to buy a resale property, the government is not taking a stake in your home, but it is insuring a part of the mortgage - so if you default, the lender will get a proportion of the mortgage back.

MoneySaverLog

Are new builds overvalued to start with though, like when you buy a brand new car. As I understand it you could get the house valued and pay back the percentage equity when you like. There may be a minimum number of years before you can clear the equity loan though.

I was looking at 3

EpsilonVaz

Thank you for taking the time to reply.

I will be a new build, with my girlfriend (who also has about £40k in BAYE/SAYE shares, unmatured).

She will be fronting 50% of the deposit from savings (ISA's, etc).

ACG

Double check with the lender before you submit anything - if they see forex on your bank statements for example they may get nervous and the last thing you want is a nervous underwriter.

Forex, not strictly gambling it kind of... some lenders have issues with gambling. For the record, im not saying they will have an issue im just saying they may.