Anyone have experience of using HTB (2nd part) on higher value mortgages?

lawlie

Hello,

Just wondering if anyone has had any actual experience of this and whether it is harder to get.

We are in that situation where affordability is not an issue, but getting together deposit + stamp duty and fees is creating more of a headache (or, I am just impatient as we are trying to buy in London )

We would be looking for a 95 LTV mortgage on a c.£480k property.

My other concern in this respect is that if the valuation is lower than any agreed price (as they are spiralling away in London atm), we would not have the additional equity to put towards it.

When does SD money have to be in your account? We would have all the upfront costs together by (end of) July, just wondering if I should wait until then or if we are ready now to start making offers and how this would appear to a lender.

Any advice would be much appreciated

kingstreet

It's 95%, it's affordable, you fulfill the lender status requirements.

It doesn't really matter how much it is.

You'll normally be expected to produce evidence of savings for the deposit and fees to lender and/or solicitor at application.

lawlie

Thanks kingstreet. Yes, we already have the 5% deposit available, and a bit more on top of that, but we would not have all the stamp duty monies together until closer to completion. Would that be problematic?

It's good to know that there isn't some sort of stricter criteria when you get closer to the HTB limit as I was worried that perhaps in practise, they aren't actually ever approved. Affordability is not an issue as we are looking to borrow less than 3x earnings.