Help to buy possible with £70K deposit but low income?

olympicsmummy

I have a £70K deposit but my salary is only £12000. I require a 2 bed flat but I cant quite afford any on my salary as they are around the £160+ mark in my area.

Does anyone know if help to buy is only available for those with a low deposit? I've researched but all the info is regarding those with a low deposit and no mention of people who have a large deposit but a low income!

Thanks in advance for your replies

kingstreet

If you are buying a newbuild, the HTB - Equity Loan scheme will be helpful as it increases your deposit, leaving you less needed on the mortgage. You will need to borrow 25% of the purchase price though.

However, as the cost of ground rent & service charges and a notional 3% of the equity loan are now deducted from affordability, you will struggle to get a meaningful amount based on that income.

If you are not buying a newbuild, the HTB - Mortgage Guarantee scheme will not be of any help, as it does not enable you to borrow more than you can afford and is only useful for mortgages at a loan to value of 90%+.

ethank

Unfortunately, you don't earn enough to support a mortgage at this level. Do you have any opportunity to find a better paid job?

Strapped

Move to a less expensive area? Bognor/Portsmouth?

pmlindyloo

There are some mortgage lenders who take tax credits into account.

For example:

http://www.nationwide-intermediary.co.uk/lendingcriteria/general/income

If the deposit money from your parents isn't showing in your account then I am presuming that you get tax credits and maybe other benefits.

You need some advice from an independent mortgage advisor. Martin Lewis' article (click on Mortgages Homes at the very top band) is worth a read.

ethank

OP has also posted in a different forum. https://forums.moneysavingexpert.com/discussion/4981159