New build incentive limit on mortgage?

sartois

kingstreet wrote: »

Already answered.

Ah ok thanks I actually didn't know what you meant by that in all honesty but I get it now

I'll tell the broker to keep things as they are just to get the ball rolling. I am not sure why he keeps insisting that I get the builder to lower the incentive when the Halifax will just give me a lower mortgage and I will pay extra on top of the deposit.

kingstreet

I'm just thinking about this a bit further.

You really need to get all the incentives and pricing correct at the outset. The PIF & Reservation has to go to the HCA Help To Buy Agent for the approval of the equity loan and the issue of the Authority To Proceed.

If the property is then downvalued, or the mortgage amount altered, it will have to go back for amendment.

I suggest you simply ask the builder to knock £2k off the price and give you the 1% incentive and you end up in about the same position. Unfortunately, you will still have to find the balance of the stamp duty in cash though. TBH if the incentive is left as it is, the same thing will happen, as you'll have to increase your deposit by that £2k, to make up the shortfall and the ATP will have to be altered.

You, your builder and broker need to get your heads together and figure out how to set this up correctly at the outset.

sartois

That is a very good point and makes sense. Guess it's a paperwork change then!

I don't mind the £2K loss of incentive. I never thought I would be able to get anything off at all (due to the supply and demand problems in London), and it's only due to their desire to use their own broker that they offered the incentive in the first place so a £3K stamp deposit saving is still better than I thought I would get anyway.

Thanks for your help - much appreciated