Help to buy equity share question

Guinness-Cat

Hi,

I sent an application for permission to proceed this morning (PIF + builders reservation form).

I have now realised that I put the mortgage term as 30years and they may have an issue with this - not because of affordability issues, but because the IFA I'm trying to circumvent using (new homes mortgage helpline) had mentioned this in discussions earlier.

I reserved the house on Saturday, so would like to have everything in a position that I can exchange ASAP.

Do you think it may be worthwhile submitting the form again with a mortgage term of lower - or should it be OK?

Or do I need to use an IFA? - I'd prefer not to since I've always dealt with this myself in the past and feel more comfortable doing so.

TIA

Guinness-Cat

amnblog

Guinness-Cat wrote: »

Hi,

I sent an application for permission to proceed this morning (PIF + builders reservation form).

I have now realised that I put the mortgage term as 30years and they may have an issue with this - not because of affordability issues, but because the IFA I'm trying to circumvent using (new homes mortgage helpline) had mentioned this in discussions earlier.

I reserved the house on Saturday, so would like to have everything in a position that I can exchange ASAP.

Do you think it may be worthwhile submitting the form again with a mortgage term of lower - or should it be OK?

Or do I need to use an IFA? - I'd prefer not to since I've always dealt with this myself in the past and feel more comfortable doing so.

TIA

Guinness-Cat

I think you need a good reason to try to do this yourself. There are not many lenders in the market and you are already confused about mortgage term.

kingstreet

When we submit a PIF & Res to an HTB Agent (BPHA, Orbit, Radian) if the mortgage term is over 25 years, we attach a copy of the completed HTB Affordability Calculator and note in the email "the mortgage term is XX years for affordability reasons."

However, it's fair to say this is a throwback to the days pre-October 2014 when the old PIF didn't ask for a mortgage term, nor did it ask for Local Authority, property type, number of bedrooms, tenure etc.

glasgowgirl80

Is this the same as Help to Buy equity loan? If so, I am doing this and have a mortgage term of 30 years. It wasn't an issue, the Authority to Proceed stated my mortgage term can be 'up to 35 years'.

kingstreet

glasgowgirl80 wrote: »

Is this the same as Help to Buy equity loan? If so, I am doing this and have a mortgage term of 30 years. It wasn't an issue, the Authority to Proceed stated my mortgage term can be 'up to 35 years'.

The English version doesn't show a mortgage term range on the ATP, only the term requested on the PIF.

Guinness-Cat

amnblog wrote: »

I think you need a good reason to try to do this yourself. There are not many lenders in the market and you are already confused about mortgage term.

Reading back through my initial question - I suppose this could be a fair comment.

I already have a mortgage application ready to submit (with Nationwide). When I asked NHMH about the nationwide products I got the response - the products we will look at would only be about 1/2% percent over the nationwide rates. I wasn't too happy with that for a response which is one of the reasons I don't particularly want to use them.

Unfortunately, I'm on a tight time line - having signed a reservation form on Saturday - and am also on holiday next week - so really could do with getting the ATP back without too much of a hitch.

Regards

GC

FlyingBurrito

I'm based in England and our ATP says 35 years, as requested. I had a panic like you and thought we'd have to reduce our term to 25 years - but was okay! I applied myself to HTB Midlands and just sent PIF and building reservation form. Bear in mind that if you alter anything, your form will be put back in the queue again.

I applied for this at the end of February this year too, so up to date!

Guinness-Cat

FlyingBurrito wrote: »

I'm based in England and our ATP says 35 years, as requested. I had a panic like you and thought we'd have to reduce our term to 25 years - but was okay! I applied myself to HTB Midlands and just sent PIF and building reservation form. Bear in mind that if you alter anything, your form will be put back in the queue again.

I applied for this at the end of February this year too, so up to date!

Great news - thanks for that - it's reassuring to know.

Did they send the ATP back via email?

Regards

GC

FlyingBurrito

Guinness-Cat wrote: »

Great news - thanks for that - it's reassuring to know.

Did they send the ATP back via email?

Regards

GC

Yes, it was sent in an email. I applied 22/02 and got ATP on 03/03. That was with 2 resubmissions - one because we hadn't done a wet signature and the other because our figures weren't rounded to whole figures.

Guinness-Cat

1st Re-submission done.

I'd put the loan requested as %20 rather than the actual amount + rounded up mortgage amount.

GC

kingstreet

Guinness-Cat wrote: »

I'd put the loan requested as %20 rather than the actual amount + rounded up mortgage amount.

I always enter % & £ side by side.

I always used to use the % alone, then a somewhat sheepish young man from BPHA called me and said that mine were always the best PIFS they got (correct and typewritten) but could I please state the amount, not the percentage.

I explained this was peculiar to them and that Catalyst previously and Orbit and Radian had no issues with the %, so we agreed I'd put both, just to keep them happy.