Halifax to cease lending to existing homweowners in new HTB-EL cases?

ethank

Just received the attached message from Persimmon - it came as a shock to me that Halifax are withdrawing from lending HTB-EL for newbuild properties where the borrower is already a homeowner - surely this is wrong!

Are existing home owners about to be excluded from the Help to Buy scheme?

Considering Help to Buy? Act now!
Halifax Building Society has recently stopped providing mortgages on the Help to Buy scheme for existing home owners, with other major lenders likely to follow in the very near future.

Reserve this week to make sure you can use Help to Buy
However, all is not lost. If you reserve one of our new homes this week and get a mortgage application submitted ahead of any further changes - you will still be able to secure the home you’ve always wanted under the existing rules using Help to Buy.

See email at https://www.dropbox.com/s/p9mz20ibxtm71zz/Screenshot%202014-06-18%2013.01.59.png

Thrugelmir

ethank wrote: »

Just received the attached message from Persimmon - it came as a shock to me that Halifax are withdrawing from lending HTB-EL for newbuild properties where the borrower is already a homeowner - surely this is wrong!

Why is it wrong?

ethank

There is no information on Halifax's website about this.

Also, one of the purposes of HTB is help those people who may have a home but only a small deposit move.

amnblog

It may be the Government's 'voting catching' purpose. It is not the purpose of Lloyds TSB Group.

ethank

My concern is generally that existing homeowners with small deposits are excluded from the Help to Buy scheme which was set up to support them.

marginex

Its always been the case the Help to Buy Equity Loan scheme that you couldn't own a another property, this isn't new.

amybracher

Ok so I also had a text message from persimmon homes and their sister company Charles church. I'm currently looking to buy a new house using help to buy and I am an existing home owner (to marginex- sorry you're wrong help to buy is available to anyone as long as it's a new build property up to £600k - I believe that's the top end anyway). Iv contacted my house builder, mortgage adviser, and estate agent and ALL have confirmed that Halifax decided this move last week HOWEVER this doesn't reflect the market OR any other lenders and is a marketing ploy/ scare tactic into get you to buy one of persimmon or Charles church's developments quick. VERY naughty! I know that they are now not my chosen developer!! Hope this helps x

-UKB-

ethank wrote: »

My concern is generally that existing homeowners with small deposits are excluded from the Help to Buy scheme which was set up to support them.

Surely the scheme was set up to help non-homeowners to become homeowners?

When I recently mortgaged via Halifax for a Barratts house using a HTB - EL scheme; I had to sign solicitors documentation to say I wasn't a homeowner and that If I was, I would be ineligible for the Equity Loan element.

If existing homeowners want to use the HTB - EL, then they have to sell their existing property.

kingstreet

The point here is that LBG is not going to lend to HomeMovers who are buying on HTB - EL, only to FTBs.

Regardless of the existing property being sold, even Halifax existing borrowers are going to have to move elsewhere, paying any ERP, if they want to buy on HTB - EL.

I did cover this last week, ethank.

https://forums.moneysavingexpert.com/discussion/comment/65765707#Comment_65765707

#268.

Yorkie1

I recall kingstreet posting about Halifax's withdrawal from this lending a week ago:

http://forums.moneysavingexpert.com/showpost.php?p=65760807&postcount=268

kingstreet wrote: »

Halifax is pulling out of shared equity (inc HTB - EL) and shared ownership for anything other than FTBs from tomorrow.

If you have any shared equity or shared ownership stuff for home movers you have to get them submitted and fees paid by 8pm tonight.

marginex

amybracher wrote: »

Ok so I also had a text message from persimmon homes and their sister company Charles church. I'm currently looking to buy a new house using help to buy and I am an existing home owner (to marginex- sorry you're wrong help to buy is available to anyone as long as it's a new build property up to £600k - I believe that's the top end anyway). Iv contacted my house builder, mortgage adviser, and estate agent and ALL have confirmed that Halifax decided this move last week HOWEVER this doesn't reflect the market OR any other lenders and is a marketing ploy/ scare tactic into get you to buy one of persimmon or Charles church's developments quick. VERY naughty! I know that they are now not my chosen developer!! Hope this helps x

Sorry but how am I wrong? you can't own any other property to be accepted on the HTB equity loan! I've just been through the process myself! Not sure why you quoted the 600k limit I'm fully aware if that