Can i still get the property i want

MNM2903

I have a mortgage agreed in principal for 98k however the property I want is 145k.

I a going to be using the government help to buy scheme where they give you 20% i would then be paying a 5% deposit which i believe can be matched for a first time buyer by the company building the property which is another 5%.

so what ive worked out is that £7300 from me and £7300 from bellway. This leaves £131400 then i believe the gouvernment can give 20% of this which i believe is £131400 minus £26280 meaning i need £105120 which is leaves us £7120 short.

What are my options here? Can i save the extra 7k or do i have to get the mortgage for this. If i get 10% will the company bellway still contribute an additional 5% etc any help would be appreciated.

Thanks

kingstreet

If the property purchase price is £145,000, the HTB Equity Loan would be 20% of that, or £29,000.

One or two lenders will accept builder cash incentives upto 5%, most won't so you won;t have the run of all the HTB lenders if you go this route

So;-

£145,000 purchase price
£29,000 equity loan
£7,250 builder cash incentive
_______

£108,750 to be funded from mortgage and personal deposit.

if your maximum mortgage is £98,000 you would need a deposit of £10,750.

MNM2903

ah right thats sounds better i currently live with parents and im saving 1k per month. i did have 4k saved but used some of this to clear an argos card and to clear an overdraft so that my affordability looked better. im also consolidating 2 loans in to one which will leave me better off.

Other than that i have no debt but i thought the government 20% went of the ammount after you put the 10% obviously if it goes of the 145k then this is something i can do. a few places told me it was the lower ammount they give. i will have 12k minimum come the end of the year so do you think its a possibility getting this if i have been approved for 98k?

kingstreet

I can't answer that.

I have no idea on what basis your AIP for £98k was given. Was the lender aware you're going for HTB Equity Loan, as affordability needs to include 3% of the loan?

Are you going for a flat with ground rent & service charges? If so, these need to be factored-in.

You should be speaking to whoever is advising you about these issues.