Mortgage help please

Lola2014_2

Hi all

I am in a funny situation and was wondering if you could help me.
My wife and I want to apply for a mortgage. I have ended an iva which has left my credit file (6 years has passed) end of dec last year.

I have a 5%,deposit for a house I want which is 170k

We have a combined income of 45k per year and I have a credit card already to help my rating and have recently had a limit increase so I must be doing something right! Ha!

What I am wondering is if we stand a chance on the government help to buy scheme where they lend you the remaining up to 20%.

Do you thin I could get this and a mortgage?

Any advice appreciated.

Cheers!

kingstreet

You're looking to buy a newbuild then?

Always tough. Many lenders want six years to have elapsed from the end of an IVA and for the credit history to be clean.

You'll need to speak to a good whole of market broker who can best gauge your chances. Obtain all three versions of credit file ahead of any meeting, so they can see what is still visible to lenders.

Lola2014_2

Thanks for getting back to me

We are wanting an older house, I thought phase two of the governments help to buy scheme covered this?

The iva is off my file now so we are really hoping we now stand a chance.

Thanks for the advice, I will contact an independent adviser who can hopefully find a mortgage for us.

kingstreet

No. The equity loan is newbuild only.

This is a common misconception. The HTB - Mortgage Guarantee scheme is a 95% mortgage where the Government indemnifies the top 15% of the loan in the event of default. This is what is available on second-hand property.

The underwriting is tighter than normal 95% lending as it was designed to increase the availability of 95% mortgages by relaxing the capital requirements for lenders. Affordability is tighter, as is credit worthiness.

Definite broker job.

ethank

You are confused. There are a number of schemes branded Help to Buy. The main two available through Help to Buy are:

• Help to Buy: Mortgage Guarantee (available across the UK)
• Help to Buy: Equity Loans (available in England)

Mortgage Guarantee is an insurance policy for the lender which allows them to offer more risky 95% mortgages to someone with a 5% deposit.



Equity Loan is where the Government will take a 20% stake in your property.



You cannot get an Equity Loan for anything that is not a newbuild. So if you have only a 5% deposit, you will have to obtain a 95% mortgage on the Mortgage Guarantee scheme. I have heard lenders are being very picky! Best speak to a broker.