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Help to Buy Mortgage + Part Exchange - does equity = a deposit?

cmssbrie
cmssbrie Posts: 35 Forumite
in Mortgages & endowments
Ok, so my current house is probably worth around £75K, and we owe £55k on our current mortgage, so would be looking at around £20K in equity on our current home.

We have seen a house that offers part exchange + help to buy (David Wilson Homes), and the purchase price is £150K, but it says that you need to have at least 5% deposit on the purchase price.

Would equity in our present house amount to a deposit when it comes to part exchange and or help to buy (am not entirely sure if we would qualify for the HTB to be honest)?

Thanks as always for any input!

Comments

  • ACG
    ACG Posts: 24,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Yes... BUT I have never known a developer to offer 100% of the value of the property on a part exchange. Highest I have seen is 80%, average tends to be around 75%.
    I am a Mortgage Adviser
    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.
  • cmssbrie
    cmssbrie Posts: 35 Forumite
    Ahhh - ok - thank you :-)
  • amnblog
    amnblog Posts: 12,785 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    We had a client who was told they could not do a part exchange on to Help to Buy - not with DWH but with another developer.


    Not sure if it was the developers rule, or part of the H2B rules?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • ACG
    ACG Posts: 24,977 Forumite
    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
    Might have been that site amn - I think developers have a lot of confusion on htb and they genuinely believe its for first time buyers. Which is a surprise as I remember another developer also (pretending) being a mortgage advisor asking why im not using halifax or nationwide...

    I have never done a HTB part ex with david wilson, but I do have a potential client who will be using htb 2 and did discuss doing part ex and they never questioned it.
    I am a Mortgage Adviser
    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.
  • Verix
    Verix Posts: 241 Forumite
    Sixth Anniversary 100 Posts Combo Breaker
    Is this with Help to Buy equity loan or with Help to Buy mortgage guarantee. If it's the former you can't do it alongside a part-exchange.
    I am a Mortgage Adviser
    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.
  • kingstreet
    kingstreet Posts: 39,456 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    You can do an assisted sale on HTB EL, but not part-ex.

    Scheme rules prohibit the latter.
    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.
  • audigex
    audigex Posts: 557 Forumite
    Wasn't HTB originally only for FTBs?

    If not, perhaps people (including me) are confusing the fact it's on new builds only, with FTBs.... most of the time when we see caveats with house buying, it tends to be relating to FTBs, so I can see where that confusion would come from.
    "You did not pull yourself up by your bootstraps. You were lucky enough to come of age at a time when housing was cheap, welfare was generous, and inflation was high enough to wipe out any debts you acquired. I’m pleased for you, but please stop being so unbearably smug about it."
  • kingstreet
    kingstreet Posts: 39,456 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    HTB - Equity Loan is newbuild only.

    HTB - Mortgage Guarantee can be for both, with some lenders.

    Either way, it's available to all homebuyers, as long as they will own no other property from completion of the HTB purchase.
    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.
  • amnblog
    amnblog Posts: 12,785 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Looks like our OP has sent the headlines on the same page in the paper rather than having been given an offer of P/E and H2B.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
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