Help To Buy Equity Loan - Does a big deposit give a greater choice of Mortgages?

dontod

Hi,

Been lurking in this forum reading posts about Help To Buy Equity Loans, but I can't find an example similar to my own.

I want to buy a new build at £295,000, put down £100,000 deposit of my own and get a Help To Buy Equity Loan of £59,000. That means I need a mortgage of £136,000 which equates to a LTV of around 58% (£136,000 of the 80% of the house price that doesn't include the Equity Loan).

Do you feel that this low LTV should allow me to choose from a full range of mortgages or because the purchase involves an Equity Loan, I will be restricted from the best deals out there?

Be very interested in any comments or experiences.

TIA,

Don.

amnblog

Equity loan means specific equity loan products only.

dontod

Is there anywhere online that these products can be viewed? I have done much Googling...

MaebyJade

The below link are a few HTB product comparisons, best thing to do is go and see a broker. They have a software that after entering all your details (salary, deposit, outgoings etc) brings up all the products which you meet the criteria for the rates on offer. Only certain lenders do HTB and even then they will have specific HTB products so you won't be able to choose from all the product that lender has.

Whilst your low LTV increases your chances of being accepted for a mortgage when you come to applying one it doesn't necessarily mean you will be eligible as they take other things into considerations, like your credit history, salary etc.

http://www.money.co.uk/mortgages/help-to-buy-mortgages.htm

TopperHarris

Interesting that TSB are not on the list provided in previous post. They have a better initial rate than any listed.

betmunch

MaebyJade wrote: »

http://www.money.co.uk/mortgages/help-to-buy-mortgages.htm

Don't know if I was getting a different list, but these only had HTB - Mortgage Guarantee products when I clicked through

dontod

On the link posted (thanks MaebyJade) they have a LTV criteria. Example:

There is a Woolwich 5 year fixed shared equity.
it shows a LTV requirement of 55% or less. Do you think this is 55% of the whole value of the property or 55% of the whole value less the Help to Buy equity loan?

So in my original example, my LTV would be 46% of the Whole Value or 58% of the Whole less the equity loan.

Which measure do you think they use?

TIA,

Don.

kingstreet

Barclays HTB Equity Loan products are all available upto 75% of the purchase price of the property, or 55% of the purchase price of the property for London HTB Equity Loan, so a bigger deposit is not going to get you a better rate.

The rates only change if you pay a £999 product fee.

amnblog

You have just seen the value of comparison websites - minimal.

The important thing is which product is relevant and available to the borrower, not the 'headlines'.

I wonder why certain products are 'featured' on the default sort? Took me a while to find the Woolwich product listing.