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Help to buy scheme question, advice required please.
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![[Deleted User]](https://us-noi.v-cdn.net/6031891/uploads/defaultavatar/nFA7H6UNOO0N5.jpg)
[Deleted User]
Posts: 0 Newbie
Hi we are currently selling our property and will have money from the sale and savings of around £120,000. Our joint income is very good and our mortgage in principle said we could borrow up to £700,000.
My question is this i have just seen property i like and i think we could get if for £500,000.
1, Could i use HTB for our purchase, it is our only house?
2, What type of rates do HTB mortgages go for?
3, Do Nationwide do HTB?
4, Am i right in saying i would only need to put £50k down myself if the offer of £500K was accepted and the government borrow me the other 20% meaning I would need a mortgage of £375,000?
Any info would be greatly appreciated.
My question is this i have just seen property i like and i think we could get if for £500,000.
1, Could i use HTB for our purchase, it is our only house?
2, What type of rates do HTB mortgages go for?
3, Do Nationwide do HTB?
4, Am i right in saying i would only need to put £50k down myself if the offer of £500K was accepted and the government borrow me the other 20% meaning I would need a mortgage of £375,000?
Any info would be greatly appreciated.
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Comments
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Is it a newbuild?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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kingstreet wrote: »Is it a newbuild?
No it's not a new build.0 -
No the htb mortgage guarantee for existing properties are 95% max ltv and the rates are about 5-6% so you'd borrow £475k on a £500k property.0
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Ah so the equity loan only applies to new build property's then? Ok wouldn't be worth me doing the HTB thing then as I would get a better rate with my Nationwide branch who said they would loan me up to £700k.
Thanks for the advice.
If however I bought a new build for say £500k then I could use the HTB equity option then yes?0 -
Isn't HTB for people who can't raise a very large deposit?
If you had a HTB mortgage it would be an abuse of the system.0 -
I don't know I'm just asking the question. And I'm sure there has and will be a abuse of this system.0
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Deleted_User wrote: »I don't know I'm just asking the question. And I'm sure there has and will be a abuse of this system.
Good luck not getting one then.0 -
Thanks for your input?0
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As long as you borrow at least 25% of the purchase price, you should be fine.Deleted_User wrote: »Ah so the equity loan only applies to new build property's then? Ok wouldn't be worth me doing the HTB thing then as I would get a better rate with my Nationwide branch who said they would loan me up to £700k.
Thanks for the advice.
If however I bought a new build for say £500k then I could use the HTB equity option then yes?
Remember, the fee payments start in year six at 1.75% and increase annually. If you take a 20% loan, when you repay, you repay 20% of the property value at the time, not the amount you borrowed at purchase;-
http://www.homesandcommunities.co.uk/sites/default/files/our-work/help_to_buy_buyers_guide_sept_2013.pdfI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
kingstreet wrote: »As long as you borrow at least 25% of the purchase price, you should be fine.
Remember, the fee payments start in year six at 1.75% and increase annually. If you take a 20% loan, when you repay, you repay 20% of the property value at the time, not the amount you borrowed at purchase;-
http://www.homesandcommunities.co.uk/sites/default/files/our-work/help_to_buy_buyers_guide_sept_2013.pdf
Kingstreet. Why as a mortgage advisor are you giving advice on a HTB mortgage to someone who shouldn't really qualify as they already have a large enough deposit?
This taxpayer backed scheme was not intended for such cases.0
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