Dip, do they say which mortgage's you qualify for?

2012_bride

Due to past BR (now off record) broker has recommended Skipton BS for mortgage. We are in discussions with a buyer for our current home, which we have been waiting on so now I'm ready to start looking for a new place, current home not suitable for our needs so will either buy (hoping we get mortgage) or rent if not.

I have a general question(s) if anyone can shed some light, hopefully you will understand what I am trying to ask

When you go for a dip with skipton do they just give you a Yes or No decision as to wether they will lend or do they actually tell you which mortgage you qualify for?
So if we went for a dip and said help to buy, but they say No is that a No for any mortgage, they won't lend full stop or just a No for HTB but maybe a yes for a standard mortgage?

It is making house hunting for a new home very hard as we don't know if we can go for the £300k newbuild 'forever' home, we would really like (and have to rent for 6 months till it's built) or buy a house under the stamp duty 3% threshold that we can buy now but would want to move again in future years.

We have been told that the affordability is ok for either htb or standard from a broker, we have around £25k to use as a deposit & pay stamp duty etc

gardencity

Think you will need more than £25K cash. Stamp duty alone one 300K is 9K, then legal say 2K plus a deposit of at least 15K (5%) not to mention removals, survey, estate agent for sale etc etc

taylor86

When we approached halifax for a dip they agreed and told us what we could borrow with a minimum of 15% deposit. They said a HTB mortgage was not an option at that time. So in our case yes they told us.

2012_bride

Like I said we would only go for £300k if we got htb, otherwise it would be under £200k.
5 % on £300k is £15k, so we have that now plus extra and then by the time it is built and completed (6 months time) we would have any extra we needed.
That's good to known Taylor86, we have an old neighbour who has the same circumstances as us if not worse who got accepted for htb although it was with halifax, so fingers crossed. Plus 2 brokers we have spoken to previously, (recommended by house builder) were pretty confident we wouldn't have a problem as long as there was nothing else on our reports.
I have done various affordability calculators and they are all around the £350k mark so borrowing £225k is not pushing it.

taylor86

Halifax told us the reason we couldn't have HTB was that they want you to have an outstanding credit history and ours was ok but not good enough. This was a few months ago now.

amnblog

If you have not decided if you are buying under the help to buy equity loan scheme or a standard purchase I suggest you inform your broker accordingly.

2012_bride

amnblog wrote: »

If you have not decided if you are buying under the help to buy equity loan scheme or a standard purchase I suggest you inform your broker accordingly.

Thanks, we are still discussing the offer from our buyer so not in an immediate position to proceed any further yet, we can move in with my folks if need to.

We have spoken to 2 brokers who were confident but haven't asked any of them to proceed any further yet.

That is what we are trying to decide, we would like the htb equity loan on a newbuild which is £300k but if we don't qualify then we would have to go with standard mortgage on a much cheaper house, using the stamp duty pot to put more in for a deposit.
Is it just a case of saying right we'll go for help to buy, apply and then hope it is accepted, if not then we look at standard mortgage. We don't want to harm our chances of getting a mortgage full stop, by applying for help to buy and then it being turned down & having to then apply for standard mortgage.

amnblog

and presumably you discussed this with the broker?

2012_bride

amnblog wrote: »

and presumably you discussed this with the broker?

Not yet, she's out the office till 2moro so I thought I'd ask advice on here in the meantime, I'm going to give her a call on Monday tho as we r away this weekend.
The broker was one that the house builder uses & I understood it that the builder needed there say so before we could reserve a house, they did seem pretty confident on the phone and mentioned Woolwich, & Halifax (direct only) plus skipton but she said skipton had the better rates so that who she'd go with for us, but our reports would have to be clean for the last 6 years which they are.
She was talking specifically about the newbuild home at the time, I did ask about Newbuy and she said that wouldn't be available to us so htb was the only way to go ( for that particular property )

Like I said htb would be our first choice but maybe we are just over thinking things to much and worrying about what ifs