Help to Buy 2 - chances of getting Mortgage?

laurieballard999

emmzickle wrote: »

Who has told you the government will own 20% of your property? You will own 100% of it.

Has your broker been through repayments with the 20% loan and without it with you? And have they been through how the interest on the 20% loan is calculated?

The mortgage will be easier with the 20% loan as your monthly repayments will be considerably less and so your affordability will be better I would have thought?

I realise they will not technically 'own it' but the fact they are loaning 20% which is repayable is effectively the same concept.

I have not met the mortgage advisor yet, that comes on Wednesday next week but we had to decide on Equity Loan or Mortgage Garuantee when we paid the reservation fee and we chose the latter as we could afford to repay the mortgage.

We have an AIP and to be honest, we are not very hopeful of getting approved, despite the fact we can afford it.

emmzickle

laurieballard999 wrote: »

I realise they will not technically 'own it' but the fact they are loaning 20% which is repayable is effectively the same concept.

I have not met the mortgage advisor yet, that comes on Wednesday next week but we had to decide on Equity Loan or Mortgage Garuantee when we paid the reservation fee and we chose the latter as we could afford to repay the mortgage.

We have an AIP and to be honest, we are not very hopeful of getting approved, despite the fact we can afford it.

But the mortgage lender is loaning you money with an interest rate too?

We had to make the same decision recently and our advisor went through all the different options 25 or 35 year with or without the equity loan etc on the day we put the deposit down.

emmzickle

laurieballard999 wrote: »

I realise they will not technically 'own it' but the fact they are loaning 20% which is repayable is effectively the same concept.

I have not met the mortgage advisor yet, that comes on Wednesday next week but we had to decide on Equity Loan or Mortgage Garuantee when we paid the reservation fee and we chose the latter as we could afford to repay the mortgage.

We have an AIP and to be honest, we are not very hopeful of getting approved, despite the fact we can afford it.

P.S. Sorry I forgot to say good luck and I hope everything goes well for you! We're currently waiting to hear and I know it's horrible when you know you can afford the repayments!

Thrugelmir

emmzickle wrote: »

But the mortgage lender is loaning you money with an interest rate too?

If property prices increase then the Government takes a cut. So the loan isn't strictly cost free.

emmzickle

Thrugelmir wrote: »

If property prices increase then the Government takes a cut. So the loan isn't strictly cost free.

Where did I say it was? :huh: