Government Help To Buy Scheme

thebooler

I was recently turned down for a mortgage apparently due to my affordability.

Where's the point in this Help To Buy Scheme if I can be turned down for a mortgage DESPITE being app. £100 per month better off than I am now paying rent?

Is there anyone I can speak with about such a farcical situation?

Din85

£100.00 per month better off now, but I think they are testing affordability at much higher interest rates as the expectation is for rates to rise in the next few years.

Slayerx

As above most banks/building societies will be stress testing.

It can be as high as about 6% as they want to make sure if rates do increase you can still afford your mortgage.

£100 in the grand scheme of things doesn't leave much room.

AliceBanned

I agree it is a bit farcical, as to save for a deposit you need lower outgoings and yet if you got a mortgage you said this would lower your outgoings.

Are you able to save a bigger deposit? I had to save 15% deposit to get my place, and it is shared ownership. I know the Help to Buy is meant to help with the deposit side but I think you still need a fairly big deposit.

I ended up renting out my living room - basically do whatever you can to lower your outgoings while you save. You never know, you may be nearly there. Did the bank give you any idea of how much more you would need to save, or what other criteria you are not meeting?

leveller2911

thebooler wrote: »

I was recently turned down for a mortgage apparently due to my affordability.

Where's the point in this Help To Buy Scheme if I can be turned down for a mortgage DESPITE being app. £100 per month better off than I am now paying rent?

Is there anyone I can speak with about such a farcical situation?

Not quite sure why you think its a "farcical situation". Being £100 per month better off is not that good when you consider you will be liable for all the future maintenance on the property, buildings insurance etc. What happends if you need a new heating system ? bang goes a few £thousand straight away.If its a leashold flat you will most likely be paying thousands every few years for maintenance.

Remember that interest rates are at all time low and they will only go one way and stress testing by lenders is critical, they should be stress testing at 8% but that just my opinion.

The biggest "farce" is taxpayers lending money via HTB to people to buy houses in the first place.....;)

Still, I guess it helps to prop up the housing bubble and government coffers through stamp duty etc.