MI new Home (Help to buy 2 in Scotland)

WeegieLassie

Hi everyone,


I'm new to the forum so thanks in advance for your help. I'll try and be brief:


My husband and I are looking to buy a newbuild home which is £265k. Due to the housing market crash recently, our home has lost a lot of value and so we are light on cash for the move. Between equity we'll release and savings we can comfortably afford a 5% deposit for the house we have seen......


However - as far as I understand, under the MI new home scheme in Scotland, in order to get a 95% mortgage the value of the house has to be £250k max.


So my question is - does anyone know of any lenders that will give us the 95% (obviously assuming we pass all credit check etc) for a newbuild without using the MI new home scheme?


Thanks,
:-)

kingstreet

Go the Help To Buy - Mortgage Guarantee route instead.

WeegieLassie

Hi Kingstreet, thanks!


I think that is what MI new home is. We have a 5% deposit and the government 'guarantee' another chunk (think its 15%). MI new home is the Help to Buy 2 in Scotland. Only problem is that in Scotland you only seem to be able to purchase a property up to £250k. The house I want to buy is £265k.


Very frustrating since a 95% mortgage for the house is comfortably affordable, just no one will lend us the money.


Ta

FlyingCat

I was looking into these as was potentially going to miss out on Help to Buy Equity scheme (Scotland).

They are different schemes. The MI New Home is a Scottish scheme the same as NewBuy in England. This has the £250k limit.

The Help to Buy guarantee scheme is a UK wide government scheme and gives 95% mortgages for houses up to £600k. This is the option you will need to go for as Kingstreet says.

kingstreet

MI NewHome is the Scots equivalent of NewBuy, not HTB - MG. They are newbuild specific.

HTB - MG is separate and is just a 95% mortgage from a lender with a British Government guarantee. It is available on both newbuild and second-hand properties.

WeegieLassie

Ah cool this makes more sense. Any idea of which lenders are part of this scheme and will give mortgages. Have tried calling a few and they say no for new build

kingstreet

You'd be better off speaking to your builder's broker.

Our schemes are lender/builder/broker specific, so you need to establish your connections for your area/builder.

beecher2

Does the money come from a different fund from this one, which has ran out of money?

http://www.heraldscotland.com/business/markets-economy/scottish-governments-help-to-buy-scheme-should-have-focused-on-first-time-b.24795420

FlyingCat

beecher2 wrote: »

Does the money come from a different fund from this one, which has ran out of money?

http://www.heraldscotland.com/business/markets-economy/scottish-governments-help-to-buy-scheme-should-have-focused-on-first-time-b.24795420

No. That is the HTB Equity Share (Scotland) - this is funded from the Scottish Government and has run out of money for this financial year.

The HTB Mortgage Guarantee Scheme is funded by the UK government. It also does not really have "funds" so to speak, it's more that they provide a guarantee that the lender does not lose money.

kingstreet

Yes, there is no money to run out in what we are discussing.

The subject of the article is the Help To Buy - Equity Loan in Scotland. The Scots Government offers an interest-free loan of upto 20% of the price of a newbuild and takes a second charge over the property.

MI NewHome (S) / NewBuy (E&W) see the builder pay away 3.5% of the price of the newbuild property into a fund to cover repossessions.

HTB - Mortgage Guarantee, sees the UK Government do the same thing on 95% mortgages, in return for a higher rate being charged to the borrower.

beecher2

Sorry for confusing matters then