Question about Help to Buy checks

BRtelg

Hi All

I have decided to take the plunge with applying for a mortgage as a FTB, using the Help to Buy scheme.

This may be a silly question, but I wanted to clarify, do HTB carry out a credit check once you have submitted your HTB application? I know the mortgage company will do one, but wasn't sure if a separate one was carried out by HTB.

Any help is appreciated.
Thanks

libf

Not in England, they rely on the mortgage lender doing it. I think it might be different in Wales though...

rusty_f

I have access to all three credit reference agencies and I haven't seen a mark left on my file. The application form I had to fill out also never mentioned anything about running a check like that - I think they have to tell you if they are going to do so.

My understanding is the Help To Buy application form purely assesses affordability based on the information you provide on the form. I got my authority to proceed 2 days after applying.

BRtelg

Thanks for your replies. I just noticed on the application form it states the following:

I/We authorise HtBW to request searches from credit reference
agencies who will supply us with credit information as well
as information from the Electoral Register. These agencies
will record details of any searches whether or not this
application!proceeds.

So I'm guessing that they would do their own credit check too? I wonder if anyone knows why it might be different for an English HTB application.

Thanks,

Thrugelmir

Lenders will reserve the right to conduct what ever checks they consider necessary in processing your application. No lender is going to take undue risk before advancing you thousands of pounds.

rusty_f

Sorry, just re-read the application form I filled out and it does say I give permission to pass the information on to credit reference agencies. But I haven't seen anything recorded on my credit file.

BRtelg

My sister has used the HTB scheme to buy her 1st property in England last year and never had a credit check done for the HTB application part, only for the mortgage application. It didn't say anything about credit checks on her HTB application, so was just curious if/why it might be different for a Welsh app that's all.

Thanks for the responses, I will hopefully be submitting my app tomorrow

libf

That's devolution for you.

kingstreet

Welsh HTB is run by the Welsh Government, so it has its own application process, which AFAIK doesn't involve a credit check, but does require submission of proof of income and a direct debit to collect the "fee" payments in year six and onwards.

In England, the HTB Agents are satisfied with the applicant being able to get the required mortgage once its affordability calculator has been satisfied. So there are no income checks, nor credit check.

Verix

What Kingstreet said; no credit checks are performed by the HBA.

BRtelg

Thanks to you all for your responses. I have submitted my app to HTB Wales today ... still a long way to go yet though