safe guard financial advice?

MNM2903

Hi

Just wondering if anyone has dealt with safeguard before. My girlfriend is looking to buy and they have gave her a decision in principle the property is valued at 140k and she is doing the equity loan scheme for 20% and is looking to put a 10% deposit. It just seems a bit weird they have accepted her in principal when we have been to her bank Lloyds tsb who said the maximum is 84k and she would need a 15% deposit even on that as they class her as high risk and couldn't accept her on help to buy due to her having lack of credit history.

She earns 22k a year as a midwife and she's never missed payments so her credit is fine. Her outgoing are £295 for 2 loans.

My question is does the 140k seem like an ammount she can get with the equity from the gouvernemtn or does it sound a little to good to be true?

kingstreet

Has anyone run the HTB Affordability calculator on this?

On anything under 30 years, it's tripping on debt to income (47%) and income multiple (5.31).

Even on a longer term, the 4.5 x max income multiple is still breached.

As far as lenders are concerned, over 35 years with £295 credit and £70pm for the equity loan (3% used by most lenders) the maximum loan on the Halifax calculator is £67,190.

MNM2903

Well we gave the details to the guy at safeguard and he's came back and said it's been approved in principle. I'm speaking to him tomorrow as he's been out of the office. We gave him everything I've put in this thread. I'm just trying not to get our hopes built up about it as it doesn't seem possible given that her own bank can only give 84k but that's without the equity loan from the government.

MNM2903

Basically my credit is poor but my debts are now paid and in 5 years time my credit file will have the negatives dropping off. At that point we would look to remortgage as a couple on a joint mortgage to cover the 20% equity loan. Just at the minute were working of her wage only and we're getting a lot of mixed information and with the exception of safeguard max seems to be around 90k hopefully I'm worrying for nothing and safeguard have managed to get what we require. I just fear our lack of knowledge and mixed information that we are setting ourselves up for dissapointment.

kingstreet

HTB - Equity Loan reduces the mortgage amount you can borrow as lenders require you to enter at least 3% of the loan (£140,000 x 20% = £28,000 x 3% = £840 / 12 = £70 per month).

If the £295 per month credit commitment isn't going to be repaid before completion, it also needs to be taken into account in affordability.

I've already done Halifax (£67,190) and Santander £64,073 and NatWest £44,900 are a couple more affordability calculations I thought I'd do quickly.

I hope you are using brokers with newbuild and HTB - Equity Loan experience.

MNM2903

Well we were given safeguard by bellway homes to contact so I'd imagine they are. I did hear that high street lenders like the ones you've looked at probably wouldn't be an option so I'm assuming for now that there are others prepared to do more. But again I'm a complete novice with all this so maybe I'm being unrealistic or stupid but I'd like to think we can get the house we want as to look at houses under 90k puts us in areas where we wouldn't want to live or leaves us with a lot of work and money to spend on a home.

MNM2903

From their website it states they have exclusive deals for new build and first time buyers and they us the whole market not just high street lenders so I'm guessing they have more to offer. Anyway thanks for your advice ill see what he says tomorrow.