Help To Buy - Equity loan Mortgage limitations

omnibreak

Hi All,

I've spoken to some advisors and someone from Money advice service today but no one can seem to answer my question.

Can you select any mortgage product if using the equity loan from the government or are you restricted to certain lenders / products?

If there is a restriction is there a place to search to find out what these products look like?

We are looking to get something at the top end of our budget but before we start going down this road we want to be sure there are products we can actually afford rather than ending up disappointed when the actual monthly payments are much higher because the H2B mortgages aren't as competitive.

Thanks All!

LJS2014

Hi,

It may have changed since I got a HTB Equity loan a couple of years ago but I was restricted to specific lenders who offered one specific product in relation to HTB, I didn't have the option of different deals etc it was just a case of that or nothing. Like I said it could have changed since I did it (early 2013). I got my mortgage through Halifax and it was a case of ringing them up and going through all the details and them giving me the rate on offer.

If you find your local HTB agent through the HTB website they should be able to tell you which lenders are part of their scheme already so that you can contact them to see what deals they have and draw your own comparison from that maybe?

The other thing I would take into consideration if buying at the very top end of your budget is ensuring you could either pay off the 20% equity loan after 5 years or budget for the monthly interest payments from year 6 which increase annually.

gregsayer

give these people a call, both me and my brother are going through them for our HTB


http://evolvefs.com/mortgage-options/help-buy/

libf

omnibreak wrote: »

Hi All,

I've spoken to some advisors and someone from Money advice service today but no one can seem to answer my question.

Can you select any mortgage product if using the equity loan from the government or are you restricted to certain lenders / products?

If there is a restriction is there a place to search to find out what these products look like?

We are looking to get something at the top end of our budget but before we start going down this road we want to be sure there are products we can actually afford rather than ending up disappointed when the actual monthly payments are much higher because the H2B mortgages aren't as competitive.

Thanks All!

Depends on the lender. Some have specific H2B products, others let you choose from their range depends on your LTV. Consult a whole of market mortgage broker if you're struggling to work out your options.

Kell4life

What we have found is that certain lenders will only work with certain builders on their list. We are thinking of using Halifax and the builder we are looking to use luckily works with Halifax. Help to buy will only allow 45% of monthly income to be spent on mortgage and other financial commitments like childcare or credit cards otherwise you won't be allowed to take out the equity loan.