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perjubs
Posts: 59 Forumite
Hi folks, Im applying for mortgages at the minute and Im somewhat confused.
We are wanting to go for a help to buy mortgage guarantee and this is what I think I know so far.
I put up 5%, the scheme guarantees 15% abd the the bank lend the rest. So...
On a £140,000 do I apply for £112,000 (80%) or do I apply for £140,000 or do I apply for £133,000 (95%)
Thanks in advance!
We are wanting to go for a help to buy mortgage guarantee and this is what I think I know so far.
I put up 5%, the scheme guarantees 15% abd the the bank lend the rest. So...
On a £140,000 do I apply for £112,000 (80%) or do I apply for £140,000 or do I apply for £133,000 (95%)
Thanks in advance!
0
Comments
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You have totally misunderstood the scheme.
If you are using the guarantee scheme you provide all the deposit. The internal workings the scheme do not affect your terms as the borrower.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.0 -
You have totally misunderstood the scheme.
If you are using the guarantee scheme you provide all the deposit. The internal workings the scheme do not affect your terms as the borrower.
So how does it help me then? Also more important to me right now, do I apply full value of the house or the value minus my deposit?0 -
No. You apply for a 95% mortgage if you have only 5% deposit.Hi folks, Im applying for mortgages at the minute and Im somewhat confused.
We are wanting to go for a help to buy mortgage guarantee and this is what I think I know so far.
I put up 5%, the scheme guarantees 15% abd the the bank lend the rest. So...
On a £140,000 do I apply for £112,000 (80%) or do I apply for £140,000 or do I apply for £133,000 (95%)
Thanks in advance!
You are trying to meld HTB - Mortgage Guarantee and HTB - Equity Loan together.
HTB - MG makes no practical difference to you as all the guarantee does is guarantees the solvency of the indemnity fund to which you contribute via your monthly payments. This covers lender losses on repossessions.
The scheme makes 95% mortgages more widely available.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 -
kingstreet wrote: »No. You apply for a 95% mortgage if you have only 5% deposit.
You are trying to meld HTB - Mortgage Guarantee and HTB - Equity Loan together.
HTB - MG makes no practical difference to you as all the guarantee does is guarantees the solvency of the indemnity fund to which you contribute via your monthly payments. This covers lender losses on repossessions.
The scheme makes 95% mortgages more widely available.
That's brilliant, thanks for that. So if I want a £140,000 house I should be asking the bank for £133,000 or still ask for the £140,000?0 -
You should see a broker and get some face to face advice.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.0 -
£140,000 on a £140,000 purchase would be 100%.That's brilliant, thanks for that. So if I want a £140,000 house I should be asking the bank for £133,000 or still ask for the £140,000?
You require 95% and that means 5% deposit, £7,000, and a £133,000 mortgage as you suggested.
That will be subject to affordability, of course.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 -
kingstreet wrote: »£140,000 on a £140,000 purchase would be 100%.
You require 95% and that means 5% deposit, £7,000, and a £133,000 mortgage as you suggested.
That will be subject to affordability, of course.
Of course
again thank's for that, I know it seem's quite simple but I wanted to make sure I had it right. 0
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