Help To Buy - Getting an Authority To Proceed

WCN87

Hi, how often are these rejected? Will be sending ours of tomorrow and when using the help to buy eligibility calculator we can be lent what's required. Just wondering if they have any caps on credit card debt/loans? And also if the information provided gets matched against your mortgage at some stage?

Mummyto4kids

We did ours via the broker on the new build estate we are buying from with a HTB Equity loan. Got the form back with authority to proceed within a few days. He did all the pre assessment so was confident it would go through. He did it all for us so it was very easy.


In terms of matching information so long as you've declared everything I wouldn't have thought this is an issue if it is indeed something they do. Our broker hasn't said that they do, but we perhaps wouldn't know anyway because he has all of our paperwork, credit files and details so I guess they'd go to him rather than us.

libf

If you're worried then download the spreadsheet at the web address below and fill it out with your details.

http://www.plumlife.co.uk/Finding%20a%20Home/Can%20I%20afford%20to%20buy/Pages/default.aspx

TakeItAsRed

So long as nothing turns 'RED' on the bottom of the spreadsheet then you should be fine.

Alphabet89

Is this an abitary calculation and you simply have to be at 44.something % as opposed to 45. something or is it much more judgementally based through HTB Affordability (debt/ income ratio)?
The prospective purchase i'm after is very close with the deposit i'm willing to input
Thanks

TopperHarris

You could call the local H2B agents. I found them very useful.

Verix

HTB applications are very rarely refused outright. They may send a correction back if they find something they want changing but unless you are secretly owning a property you didn't tell them about it should be fine. It's the mortgage lender that will credit check you and do all the digging.

Alphabet89

Thank you- if you get refused is there any issue with resubmitting following an increase in deposit? say very shortly after because of a bonus payment recently calculated>?

Alphabet89

TakeItAsRed wrote: »

So long as nothing turns 'RED' on the bottom of the spreadsheet then you should be fine.

Is there an updated version as the tax amounts have changed which increase the amount of net income (after tax)

Verix

No problem with putting in a second one afterwards with a larger deposit. They might have an issue if your income had been changed to make it fit though.

Octaben

Basically your mortgage/debt total cannot exceed 4.5 times your income and your total debt repayments, including the equity loan interest payment and ground rent/maintenance cannot exceed 45% of your income

You can resubmit pretty much as many times as you like. They do not ask for any proof of income, unless you're relying heavily on bonus/commission in which case they may want evidence to show that it is guaranteed, though bear in mind that they will only accept 50% of this figure

Assuming all is correct, you will get the authority to proceed within 4 working days of submission (after 4pm is classed as the next day)

Just make sure you're completely honest with your application and you'll be fine

Oh and make sure the financial figures on the Property Information Form actually add up to the purchase price. You'd be surprised how many have to be sent back because someone hasn't added up the figures correctly