Help to Buy Mortgage Guarantee + Part Exchange

DJBenson

Can anybody say categorically whether you can or cannot part-exchange as part of the Help to Buy Mortgage Guarantee scheme?

The Help to Buy site specifically mentions part-exchange under the FAQ's for the equity loan scheme but mentions nothing on the guarantee scheme FAQ on the same page!

With no 3rd party involved in the guarantee scheme (e.g. it's "just a mortgage") is it even technically possible to stop you part exchanging with a developer?

DJBenson

Source: http://www.helptobuy.org.uk/useful-information/faqs

kingstreet

Are there lenders offering HTB - MG on newbuilds now?

AFAIK until NewBuy is formally withdrawn, HTB - MG for a newbuild is unlikely as many lenders won't offer 85% on a newbuild, the point the guarantee starts.

DJBenson

The whole Help to Buy thing is a pot of confusion.

The original scheme allowed either the equity or the mortgage guarantee scheme on a new build. It was later widened to allow the guarantee scheme on older properties.

At no point did I see that the MG had been withdrawn for new builds - I know NewBuy is on its way out (because that scheme actually cost the builders who had to pay into the security bond) but HTB MG is still widely advertised (http://www.halifax.co.uk/mortgages/help-and-advice/schemes/) and there is no mention of not allowing purchase of a new build.

Guess I'll have to wait for my adviser to give the official answer.

kingstreet

TBH I wasn't saying it had been withdrawn for newbuilds, merely saying that I knew of no lenders publicly offering it on newbuilds yet.

As newbuild specialist brokers, we'd be using it by now if it was widely available. Saying which, we've only done one NewBuy case in the last six months, so perhaps the demand isn't there when the HTB - Equity Loan scheme is more attractive/popular with buyers.

I'd be interested in what you find out. As Newbuy is builder/lender/broker specific, it may well be the market is restricted to larger builders and their connections.

DJBenson

Yes sorry kingstreet - I didn't mean that I'd taken it that the scheme had been withdrawn, more that there is a lot of confusion about what options are available on HTB with regards new builds.

The equity scheme is more appealing but we are not eligible for that as you cannot part-exchange so we are at the mercy of the market to find a buyer unless we can part-exchange on the MG scheme.

I'll update you once I get a response from my broker, I'm braced for the worst though.

kingstreet

Although you cant part-ex, an assisted sale is permitted, if that's any help. Ask your builder what options it has for you.