Calcilations

cherry_three

Hi again. Could some one clarify something for me?

When using mortgage calculator it advice that we could get a Mortgage of £131,000.

So does this mean with a 10k deposit we could get a home for £141,000? Or is it £121,000?

Just being looking at Equity loan and it is saying with a 6k deposit the government would loan us a further 23k. Leaving us with a 90k mortgage. Which may be 30k under afforfability?

I understand that the EL needs payed back at 5 years interest free. Some of you may read my husband has had PDL, and is only blip at momemt. How does your credit need to be for this scheme? It seems your effectively putting a 25% down so it should be easier in theory?
We have also had a Rep from Persimmon ring us and has give us the number for the advisors. In anyones exoerience how good are these mortgage brokers?
Thanks again

kingstreet

Take your maximum borrowing power and add that to your deposit.

That is the amount you can spend on a property.

HTB - Equity Loan sees you able to borrow either 10% or 20% of the purchase price and you put down a deposit of at least 5% yourself. The loan is interest-free for five years, bit it doesn't have to be repaid until sale of the property, or the end of the term.

When you do pay it back, it's based on the property value at the time, not the original amount you borrowed.

http://www.helptobuy.org.uk/equity-loan/equity-loans

How good are which mortgage brokers? You haven't told us who it is?

cherry_three

Thankyou kingstreet that has cleared alot up!

The mortgage team are called 'safeguard'.
Cheers

kingstreet

You'll have to wait and see if anyone stops by who has used them.

aero1

Hi Cherry Three

I went to a Help To Buy event recently and was told that for both the Equity Loan or Mortgage Guarantee you need to have a good credit history, just pass all the usual criteria. I left at this point

cherry_three

Thats what I was afraid of.

In amyones experience....would pay day loans 4 years ago stop 9ne of these schemes going ahead?

Also could a While of Market broker help out on auch schemes? Or is it just brokers for the big builders etc?
TIA

kingstreet

aero1 wrote: »

Hi Cherry Three

I went to a Help To Buy event recently and was told that for both the Equity Loan or Mortgage Guarantee you need to have a good credit history, just pass all the usual criteria. I left at this point

Who was running this "event?"

You aren't going to get a bankruptcy last year through, but some historic adverse, perhaps a default or two more than three years ago is eminently "placeable" on HTB - Equity Loan, more difficult on Mortgage Guarantee as we're talking about 90%+ there.

Some of the HTB - EL lenders actually publish the criteria for what adverse they are prepared to consider.

kingstreet

cherry_three wrote: »

would pay day loans 4 years ago stop 9ne of these schemes going ahead?

No. It wouldn't.

aero1

Hi Kingstreet

it was Help to Buy South, they hosted an open evening in the Civic offices - to be honest I didn't question him any further than that as I was expecting that to be the case. If the government is effectively lending thousands and thousands, I would expect them to be picky...
Still worth looking into though Cheery Three, you're credit history is probably not as bad as mine : )

kingstreet

Radian?

Like BPHA (SE) and Orbit (Midlands) the other HTB Agents we deal with, they are normally ex-local Government people who know a lot about affordable/social housing and eff all about mortgage arrangement.

That's why they all have independent mortgage broker panels they insist do their SO/HTB calculators for them.

aero1

Kingstreet that's interesting - yes it was! The guy I spoke to did admit he knew very little about Mortgage guarantee.
So you think they would look at someone with less than perfect credit for Equity Loan?

Cheers