Help to Buy conundrum

Hamalam

My boyfriend and I are first time buyers and have been told we can borrow a maximum of £150,000. We have a £25,000 deposit and so therefore have been viewing properties up to £175k. We saw a property that had been on the market for a year at £199,950 and put in a cheeky offer of £175k. Predictably it was rejected and we think £185k will secure the property. Now this is obviously £10k more than we have.

I have asked our financial advisor and another financial advisor whether we could secure anymore money using the help to buy scheme. My thought process being that the maximum amount we can get a mortgage for remains the same, but if we can use less of the £25k as a deposit, as the government will guarantee a percentage, then we can add in more
Money to offer a higher price.

I don't know if this is possible and the financial advisors I have spoken to seem to have no real knowledge of help to buy.

I'm wondering that if we add in cash whether it will cancel out how much the government will guarantee.

Any advice given will be gratefully received!!

libf

Is the property a new build? Help to Buy Equity loan only applies to new builds.

kingstreet

Only if you are buying a newbuild.

Then you can have the equity loan of either 10% or 20% of the purchase price of the property.

http://www.helptobuy.org.uk/

Help To Buy - Equity Loan for newbuilds.

Help To Buy - Mortgage Guarantee for second hand and newbuild, but 95% mortgage with no equity loan.

Equity loan has been around over two years and some "financial advisors" still don't know how it works?

Pathetic.

stator

No offense intended, but is it worth the risk of stretching yourself to the maximum amount possible?

Red-Squirrel_2

185 is still 15K less than the asking price, what makes you think this will be enough? Have you had some indication from the seller?

Be careful of looking at houses on Rightmove that are so far outside your budget, its inevitable you'll fall for one you can't afford!