Help to Buy London Mortgage Help

TheReader

Good afternoon all,

My partner and I are considering to buy a new build apartment in London this year. The apartment would be financed 5% by our own deposit, 40% by the Government's 'Help to Buy London' scheme and the balance by a mortgage.

The monthly mortgage costs are affordable (less than we pay renting in fact), but we would struggle to cover all the upfront additional charges, fees and stamp duty. We can't reduce our deposit to cover these costs are we are required to have a minimum 5% deposit which we are only just meeting. Looking at mortgage calculators it shows that banks would be willing to lend us more than enough to cover both the house and extra costs.

Is it possible for these additional charges to be covered by the Mortgage itself? i.e. include an extra £15k, for example, in the mortgage to cover these additional expenses & stamp duty?

Or is there a more economically efficient way of doing this? As i appreciate we would spread these costs with interest over the life of the mortgage. I don't think credit cards would work due to the size of costs involved.

Thanks in advance.

csgohan4

TheReader wrote: »

Good afternoon all,

My partner and I are considering to buy a new build apartment in London this year. The apartment would be financed 5% by our own deposit, 40% by the Government's 'Help to Buy London' scheme and the balance by a mortgage.

The monthly mortgage costs are affordable (less than we pay renting in fact), but we would struggle to cover all the upfront additional charges, fees and stamp duty. We can't reduce our deposit to cover these costs are we are required to have a minimum 5% deposit which we are only just meeting. Looking at mortgage calculators it shows that banks would be willing to lend us more than enough to cover both the house and extra costs.

Is it possible for these additional charges to be covered by the Mortgage itself? i.e. include an extra £15k, for example, in the mortgage to cover these additional expenses & stamp duty?

Or is there a more economically efficient way of doing this? As i appreciate we would spread these costs with interest over the life of the mortgage. I don't think credit cards would work due to the size of costs involved.

Thanks in advance.

Mortgages don't cover these fees, it only covers the cost of buying the house outright, not Stamp duty or legal fees associated.

If your struggling to pay these fees, are you ready to buy a house and maintain it as well as saving up to pay the 40% loan back to the government

amnblog

No, unfortunately you cannot cover these costs with the mortgage.