Help to Buy - Match Deposit

M1lsey

Hi,

My wife and I are trying to buy the flat we are currently renting from the housing association. When we moved in, we signed contracts stating that the housing association would contribute up to £5200 towards our deposit matching our pound for pound.

We have now saved £5500 and are wanting to buy our flat.

The flat has been valued at £140k, so we are looking to buy with a 95% LTV mortgage (be it HtB or not) but we are struggling to find a provider that will accept the £5200 towards the deposit.

I know there isn't much in it between the £5500 and the £7000 than we need to get a 95% LTV on our own and get Housing association to gift the £5200 off the value of the property, but we need to buy asap as we have a baby due in Dec.

So the question is; does anyone know of any mortgage suppliers that would accept the £5200 as part of our deposit?

ACG

I dont think you are going to get any high street lenders to accept it.

There may be a couple of smaller lenders - but I would suggest speaking to a broker.

kingstreet

If you are using HTB - MG at least 5% has to come from your own resources.

There are lenders who will accept a price reduction as deposit from landlord for a sitting tenant, but the rules for HTB - MG prevent it being used in these circumstances.

M1lsey

kingstreet wrote: »

If you are using HTB - MG at least 5% has to come from your own resources.

There are lenders who will accept a price reduction as deposit from landlord for a sitting tenant, but the rules for HTB - MG prevent it being used in these circumstances.

Cheers for that, I thought that was the case. Looks like I need to get the 5% sorted.

Thanks

stator

Where in the Help to Buy - MG rules does it say about the source of the deposit?
I know banks have their own rules, but I don't think it is written in to the Help To Buy scheme, is it?
ps Nationwide Save To Buy and Yorkshire Bank and Yorkshire Building Society all offer 95% mortgages outside of the Help to Buy scheme, so you can check their rules on source of deposit too.

kingstreet

stator wrote: »

Where in the Help to Buy - MG rules does it say about the source of the deposit?
I know banks have their own rules, but I don't think it is written in to the Help To Buy scheme, is it?

Lenders are pretty much left to figure out their own "rules" within what the scheme proscribes, but TBH I'm not going to wade through the sixty-six pages to find out.

I don't know a lender on HTB - MG which will accept anything other than a minimum 5% deposit from borrower's own resources.

If someone can find one, I'll be happy to stand corrected.