Questions on Help to Buy Equity Loans

redbuzzard

I'd like to support my son in buying a flat, by helping him with a meaningful deposit without which I think it would be impossible for him in this area.

All the references to HTB Equity Loan I can find outline 20% equity loan, 5% deposit, 75% mortgage.

First question, is it permitted to have more deposit? e.g. 20% from my son, with my help, 20% equity loan, 60% mortgage? This seems such an obvious question but isn't addressed in the FAQs. It would be a much better proposition for him to have a more comfortable mortgage payment through a lower loan and possibly a better rate.

Second question, if my son buys a 2 bed flat for example, would he be permitted to let a room? The FAQs make clear that sub letting is not allowed, but that doesn't seem to cover this point.

Are there any other ideas we should be considering to get my son on to the ladder?

Thanks in advance for any help with this. I appreciate that agents etc. will have information but it would be good to have some knowledge and idea of what is tenable before engaging with those with an axe to grind.

kingstreet

Yes. The minimum deposit is 5%, but the minimum mortgage is 25% so larger deposits are possible.

Taking in a lodger isn't prohibited by the scheme, only letting, or sub-letting in the case of a leasehold property.