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Help to Buy Question
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CrispyG
Posts: 2 Newbie
I'm currently looking at Help to Buy and I'm a bit confused by the 4.5 maximum household income to mortgage value. Does this include just the mortgage from the bank or both the mortgage and the equity loan?
The bank is prepared to give me a mortgage of 4.7 times my income, effectively meaning if the multiple includes both elements then Help to Buy isn't helpful for me. Is this correct?
Thanks.
The bank is prepared to give me a mortgage of 4.7 times my income, effectively meaning if the multiple includes both elements then Help to Buy isn't helpful for me. Is this correct?
Thanks.
0
Comments
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4.5 x household income relates to the mortgage only. You can borrow 20% of the value of the home under the loan equity scheme. You will however need to provide 5% yourself. There is a maximum house value of £600,000 in England.0
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Thanks. I think where I'm getting confused is that for the mortgage I was using a multiple based on gross income whereas the Help to Buy Calculator seems to base it off a multiple of gross salary minus car loan repayments. Is that true?0
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Not sure about the Help to Buy Calculator. However when applying for a mortgage other debts will be taken in to consideration to work out affordability, so yes a car loan would be taken into consideration.
The best advice I can give is to see an independent mortgage advisor.0
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