Mortgage guarantee scheme question

WLITC

If you buy a house using the Mortgage guarantee scheme and have more than 5% deposit, can still get an equity loan for the full 20%?

So for example if I was buying a £150k flat and I had 15% deposit, could I get an equity loan for 20% and then get a mortgage for the remaining 65%?

Edit. Sorry read the scheme wrong. So rewording the question. Based on the above, I'd still have to get a 85% mortgage, so question is would the scheme still cover up to 20% of that meaning if something happened the risk to the lender is only 65% of the property?

kingstreet

Are you buying a newbuild?

If so, using Help To Buy Equity Loan you could have a 10% or 20% loan from the Government to supplement your deposit.

The minimum deposit from you is 5%.

If you place more deposit, the amount of mortgage you need will be less.

If you are not buying a newbuild, you may use Help To Buy Mortgage Guarantee and put down a deposit of as little as 5%, or as much as 9.9%, getting a 90.1% to 95% mortgage.

The rate you pay includes a contribution to the guarantee fund, to cover future repossessions on the scheme.

The Government guarantees 80% upto 95% of the loan, but this has no practical implications for you. It simply applies if the guarantee fund is insufficient to clear any shortfall on repossession.

WLITC

kingstreet wrote: »

Are you buying a newbuild?

If so, using Help To Buy Equity Loan you could have a 10% or 20% loan from the Government to supplement your deposit.

The minimum deposit from you is 5%.

If you place more deposit, the amount of mortgage you need will be less.

If you are not buying a newbuild, you may use Help To Buy Mortgage Guarantee and put down a deposit of as little as 5%, or as much as 9.9%, getting a 90.1% to 95% mortgage.

The rate you pay includes a contribution to the guarantee fund, to cover future repossessions on the scheme.

The Government guarantees 80% upto 95% of the loan, but this has no practical implications for you. It simply applies if the guarantee fund is insufficient to clear any shortfall on repossession.

It's going to be a while off yet, so haven't decided whether it will be a new build or not. What I was trying to figure out is that if I used either scheme (new build or mortgage guarantee) whether if I had 10-15% deposit under these schemes instead of the min 5% whether I can still use the scheme and more importantly, whether a higher deposit under these schemes would make me more attractive to a lender. I'm an ex-bankrupt although my credit file will be clear and in very good shape by the time I get around to buying. Essentially looking to how I can maximise my chances at a mortgage and have the max buying flexibility.

kingstreet

If you have a deposit of more than 10%, you would not use HTB - MG because you would get a better deal off it.

On HTB - EL, you would have a lower loan to value if you put a bigger deposit on top of the equity loan. That's always good.

Being a discharged bankrupt, you'll find lenders who will consider you and ones that won't and LTV will be relatively unimportant.

Within the lenders who will consider you, a lower LTV will be helpful.

To ensure you get the right advice when you do decide what you're going to do, consult a whole market broker, rather than traipse up and down the high street racking up speculative credit searches.

WLITC

Thanks for the info Kingstreet. I totally plan on getting a whole market mortgage broker when I get to that stage.