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Help 2 Buy Confusion
JonnySpandex
Posts: 7 Forumite
Hi I'm currently looking at buying a house and I'm trying to read up about the Help 2 Buy Mortgage Guarantee but can't find the answer I'm looking for or just don't understand it.
I'm looking to buy the house I currently live in/rent (mums boyfriend owns, looking to sell) and it's approx value is 140k. I've had an app with my bank and am seeing some more about mortgages as well. My bank have told me I could have 112k which obviously leaves a estimated 28k. Now with the mortgage guarantee does that mean the bank would increase my mortgage value to 95% so I could use a 5% deposit (7k in this case)?
I'm looking to buy the house I currently live in/rent (mums boyfriend owns, looking to sell) and it's approx value is 140k. I've had an app with my bank and am seeing some more about mortgages as well. My bank have told me I could have 112k which obviously leaves a estimated 28k. Now with the mortgage guarantee does that mean the bank would increase my mortgage value to 95% so I could use a 5% deposit (7k in this case)?
0
Comments
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You can borrow upto 95% of the agreed purchase price. If that's £140,000 you would need a £7,000 deposit and mortgage of £133,000.
The guarantee is not like the newbuild equity loan, so no you can't buy with affordability for only a £112,000 mortgage, unless you come up with the £28,000 deposit.
Speak to an independent broker to see if any other lender would lend you more.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
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