Helo to Buy Equity Loan Q

woolgar.c

Hello,


Hope everyone is having a good weekend. We have a question ref applying for the equity loan..


Property found for 215k
5% deposit of £10750 (could up this to approx. 13k)
20% equity loan 43k
75% mortgage applied for £161250


MB has applied to Halifax; DIP declined due to complicated circumstances. Applied in full so appeal can go to underwriter. Should hear back ref this next week.


In the meantime should we apply for the equity loan (we meet eligibility criteria & builders are registered with scheme) now or wait until we hear from Halifax?


Does it matter how many years the mortgage is arranged over for the help to buy scheme?


Thanks

kingstreet

You shouldn't be applying for the mortgage until you have the ATP (Authority To Proceed) from the HTB Agent for the equity loan.

If going for longer than 25 years, you have to justify the term to the HTB Agent using the Affordability Calculator.

Presumably you're using an HCA/HTB approved broker who has established affordability beforehand?

woolgar.c

We're using a broker that specializes with military; we informed him from the start that we would be looking at using one of the help to buy schemes but were happy to look at both schemes.
As he's based in Scotland & I think they use different schemes up there I sent the MB links to the HTB websites.
On finding a property he has gone ahead with the application & told us to proceed with the HTB application. I have sourced the name of the approved HTB agent for the area we are purchasing from the estate agent. The estate agent said we could speak to them ourselves or pass the details to our MB.

Shoukd our MB be approved for the HTB too? & will there be an issue that he has already sent off the mortgage application prior to an ATP for the equity loan? He also applied for a 30 year term so not sure how this will now effect things

ethank

The Broker need to be appointed for HTB also.

woolgar.c

Thanks for the info. Think I have some calls to make now :wall: