Help to Buy Mortgages

Black_Eyeliner

Well, went through the full application with my broker this morning. It took about half-an-hour. Should hear back in the next week. Fingers crossed it goes ok!

exoteric

Black_Eyeliner wrote: »

Well, went through the full application with my broker this morning. It took about half-an-hour. Should hear back in the next week. Fingers crossed it goes ok!

Thanks Black_Eyeliner - definitely using a broker as I'm not having a three-hour interrogation from a bank! Good luck with the application.

Gordon_Hose

haha, it was a long application, but it was comforting to know that the bank knew enough about us to decide we could afford a 95% mortgage.

Just covering themselves, I guess.

chiocken

soak wrote: »

We put our Help to Buy (Scotland) application in on Monday and got approved on Tuesday. The application was incredibly basic and easy, they didn't do a credit check or anything. Don't worry about it.

Soak, do you mind sharing what kind of ratios you got in terms of deposit, loan and mortgage? We're hoping to get the full 20% loan to use with our ~12% deposit and then get a ~68% mortgage, but I've no idea how likely this is.

We have a big lump sum for a deposit but our salaries can't cover a massive mortgage. The above ratios would bring the payments down to a manageable level for us.

soak

chiocken wrote: »

Soak, do you mind sharing what kind of ratios you got in terms of deposit, loan and mortgage? We're hoping to get the full 20% loan to use with our ~12% deposit and then get a ~68% mortgage, but I've no idea how likely this is.

We have a big lump sum for a deposit but our salaries can't cover a massive mortgage. The above ratios would bring the payments down to a manageable level for us.

Sure!

We were massively confused, which is why we ended up going with an advisor who had done a few.

Rough prices:

Full price: £167,000
Scottish Help to Buy (20%): £33400
Our deposit: £24000
Mortgage: £110,000

We basically had a £30K desposit and said to our advisor that "The most we can realistically afford mortgage wise is £110K" so he worked from there, meaning we still have ~£6K from our deposit to put towards moving in and left with essentially a 65% mortgage.

My advice to you would be to find an advisor that has done help to buy applications already. It was a massive help for us to talk to someone.

kingstreet

If you'd borrowed £108,545, you'd have been in the sub 65% band and may have got a lower rate.

Does depend on lender though. If you're with a lender with 60% to 70% banding, it would make no difference.

soak

Yes, 60% to 70% banding. You don't have a lot of choice when going Help to Buy. Although, it's still a lot cheaper than renting!

kingstreet

soak wrote: »

Yes, 60% to 70% banding. You don't have a lot of choice when going Help to Buy. Although, it's still a lot cheaper than renting!

There's probably more choice in England. Last count I think we're upto about twelve lenders with another couple on the way.

soak

Still 5 here. Even the forms we fill out take into account the 3% interest rate on the English version. Which meant when our outgoings were calculated we still had to add that in, even though it doesn't apply to Scotland. Still early days up here!

kingstreet

soak wrote: »

Still 5 here. Even the forms we fill out take into account the 3% interest rate on the English version. Which meant when our outgoings were calculated we still had to add that in, even though it doesn't apply to Scotland. Still early days up here!

Yeah, lenders assume everything is standard, regardless of where you're from.

It's a bit rich making it 3% when you're not going to pay that until about year fifteen (assuming RPI of 5%pa) but even worse if you're never going to pay anything. :eek: