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Help to Buy and a deposit of over 5%

jimbo83
jimbo83 Posts: 186 Forumite
Part of the Furniture 100 Posts Combo Breaker
in Mortgages & endowments
Hi All

Myself and partner are looking at moving house and utilising the HTB scheme. However, we are looking at having a deposit of of around 15-20% of the purchase price.

Would the HTB scheme still be available to us? Or would we have to put down 5% and no more?

Thanks
«1

Comments

  • Edi81
    Edi81 Posts: 1,502 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    Why would you want to use HTB?

    Is it a new build you are looking to buy?
  • jimbo83
    jimbo83 Posts: 186 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    Edi81 wrote: »
    Why would you want to use HTB?

    Is it a new build you are looking to buy?

    Yes.

    We were wondering if the scheme could be used to help us get something more expensive, basically.

    Would the higher deposit blow us out of the water?
  • stephenni1971
    stephenni1971 Posts: 895 Forumite
    No its fine with a deposit >5%
    I am a Financial Adviser specialising in Mortgages, Protection, Health and Medical Insurance. I also write wills. All information posted on this site is for discussion only, and should not be taken as advice.
  • Teaandtoast0124
    Teaandtoast0124 Posts: 150 Forumite
    You get 20% from the goverment. And you can place between 5% and 20% deposit. So yes you can put more deposit down.
  • jimbo83
    jimbo83 Posts: 186 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    stephenni1971 wrote: »
    No its fine with a deposit >5%

    Thanks.

    Just so I am understanding correctly, I'll use a quick example to show what I think would happen under the loan equity scheme:

    Purchase price: 250,000

    Deposit: 50,000

    Govt loan: 50,000

    Mortgage: 150,000

    Is that correct, I assume so?!


    How is the mortgage guarantee scheme different? Would I be able to use it based on the numbers above?

    Thanks
  • ACG
    ACG Posts: 24,689 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    What will you be doing with your existing property?
    Your not allowed to own more than one property using the help to buy scheme.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • Edi81
    Edi81 Posts: 1,502 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    I believe that the mortgage guarantee is really for the benefit of the lender. You would Have a 95% mortgage with it and would have a higher interest rate.
  • jimbo83
    jimbo83 Posts: 186 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    ACG wrote: »
    What will you be doing with your existing property?
    Your not allowed to own more than one property using the help to buy scheme.

    My current property would be sold.
  • stator
    stator Posts: 7,441 Forumite
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    HTB Mortgage guarantee is just like a normal mortgage as far as the customer is concerned. The bank just pays a fee to the government to back up part of the mortgage and it doesn't affect the customer.
    Changing the world, one sarcastic comment at a time.
  • jimbo83
    jimbo83 Posts: 186 Forumite
    Part of the Furniture 100 Posts Combo Breaker
    edited 25 January 2015 at 6:58PM
    stator wrote: »
    HTB Mortgage guarantee is just like a normal mortgage as far as the customer is concerned. The bank just pays a fee to the government to back up part of the mortgage and it doesn't affect the customer.

    Thanks

    So you would be subject to the same affordability assessment? ie the lender wouldn't disregard any amount guaranteed by the government?
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