Eligible for help to buy equity loan?

PrincessLou

We're looking at homes worth £250,000.

Maximum mortgage we can get is £150,000.

We will have a deposit of £50,000 from our current home.

Are we eligible for a help to buy equity loan to borrow the extra 50k?

Any advice much appreciated!

libf

Is it a new build that you're buying? If so, yes (assuming you pass affordability). If not, no.

PrincessLou

Yes, it is a new build. I'm just confused and wondering if it is only for those with a small deposit?

libf

PrincessLou wrote: »

Yes, it is a new build. I'm just confused and wondering if it is only for those with a small deposit?

It's for if you can't afford it without help. I'm putting down 10%, getting a 20% help to buy loan and a 70% mortgage because my salary won't support more than a 70% mortgage.

Worth double checking in your situation, but I don't think it will be a problem.

TBeckett100

PrincessLou wrote: »

We're looking at homes worth £250,000.

Maximum mortgage we can get is £150,000.

We will have a deposit of £50,000 from our current home.

Are we eligible for a help to buy equity loan to borrow the extra 50k?

Any advice much appreciated!

In theory, you could buy at £250,000, H2B will give you £50,000, you get a mortgage of £150,000 and put £50k in yourself.

before you apply for H2B, you should run some figures in here as this determines whether you get it or not on affordability

http://www.plumlife.co.uk/About%20Us/News/Pages/Help-to-Buy---Equity-Loan---simple-to-buy.aspx

Adj29

I thought with the help to buy equity loan it was a maximum of 20% equity loan and a minimum 5% buyers own deposit. So if the buyer has 10% deposit the max equity loan would be only 15%!!!
Is there anyone who can confirm this as that's how I have interpreted it. We have an application in with Natwest currently.

libf

Adj29 wrote: »

I thought with the help to buy equity loan it was a maximum of 20% equity loan and a minimum 5% buyers own deposit. So if the buyer has 10% deposit the max equity loan would be only 15%!!!
Is there anyone who can confirm this as that's how I have interpreted it. We have an application in with Natwest currently.

Minimum, not maximum.

My Help To Buy loan is already approved. 10% deposit, 20% equity loan, 70% mortgage (although I haven't applied for this yet).

kingstreet

Maximum deposit is actually 65%.

Minimum mortgage is 25% and minimum equity loan is 10%.

NatWest however accepts only a 20% deposit on top of the equity loan, but that's their shout, not based on scheme maxima.