Help to Buy - possible with large deposit?

ds01

Hi, this is probably a silly question, but does anyone know if it is possible take up Help to Buy with a large deposit? I can't find an answer online anywhere, even here, and I don't want to look silly approaching a bank or broker (and the Help to Buy agent!)

I'm interested in new builds that unfortunately I can't stretch to with the limited amount I can borrow plus the largish deposit I have. The developer I visited today suggested I could get an equity loan of £37K using Help to Buy in order to get me up to the purchase price on the £188k property. I can only raise £105-120K in mortgage but have £50K cash deposit. I'm a first time buyer.

Is this allowed? Doesn't seem right - surely it would make HTB too much of an inflationary force?

FYI I am in a profession where my salary will rise sharply in the next 5 years as I've just qualified, it's low at the moment. However I want to get ahead on the housing market with the large deposit I am fortunate to have, if at all possible, rather than let it all stew in an ISA and savings accounts, being massively overtaken by London + SE property prices, until my salary rises!

jordanw_2

No question is a silly question!

My understanding is that you are able to put down as much of a deposit as you wish, the minimum being 5% with the government putting up anywhere between 10% and 20%.

I would've thought with such a large deposit you may not quality for the full 20% equity loan, but you never know.

Contact HelpToBuyESE for Kent/South East if that's where you're looking and verify, no harm.

The following is a usual read:
http://www.helptobuy.org.uk/docs/default-source/default-document-library/help-to-buy-equity-loan-buyers-guide.pdf?sfvrsn=4

Regards,
~Jordan

libf

"Minimum deposit is 5%, but you can put down upto 55% with a 20% equity loan and minimum 25% mortgage."

https://forums.moneysavingexpert.com/discussion/5251998

Kingstreet knows his stuff.

kingstreet

There will be no problem with this.

However, the future cost of the equity loan and any ground rent & service charges will affect your affordability so ensure you qet a competent broker to work out your HTB - Equity Loan affordability now, before you get too far down the road with a builder.

That's Government and lender affordability.