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Forces Help to Buy
KateCon
Posts: 1 Newbie
Hi
I need some help/advice. We are FTB using the Forces Help to buy scheme.
We went through a broker who said only the Halifax supported it. Then we were told that Halifax considered it another loan & reduced the mortgage they would offer us. Effectively there's no way we could get a house in the area we want with the mortgage they are offering.
I didn't think this was how it worked?
I need some help/advice. We are FTB using the Forces Help to buy scheme.
We went through a broker who said only the Halifax supported it. Then we were told that Halifax considered it another loan & reduced the mortgage they would offer us. Effectively there's no way we could get a house in the area we want with the mortgage they are offering.
I didn't think this was how it worked?
0
Comments
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Effectively there's no way we could get a house in the area we want with the mortgage they are offering.
The HTB schemes aim is not to keep property prices inflated but to assist people to purchase. This may well require choices to be made. Think smaller in order to get onto the first step of the ladder.0 -
There are several lenders who accept forces help to buy - all of them will deduct the monthly cost of that loan from their affordability calculation for that mortgage.Hi, we’ve had to remove your signature. If you’re not sure why please read the forum rules or email the forum team if you’re still unsure - MSE ForumTeam0
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FHTB is a loan and it has repayments, ergo it is taken into account in affordability.
HTB Equity Loan is the same. Payments start in year six. Lenders expect you to factor 3% or 4% of the loan into affordability, despite the year six cost being only 1.75%.I am a mortgage broker. 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. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Your broker is talking nonsense. The majority of mainstream lenders will accept it. I do half a dozen a week.
You cvan combine it with the HTB Equity Loan Scheme but there are very few lenders who allow this. It is possible but you are better speaking to an adviser familiar with the scheme.
In some cases reducing the amount you draw on FHTB can help affordability as the cost/benefit of taking the loan varies depending on the amount you apply forI 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.0 -
I fully support the forces help to buy scheme.0
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