Help to buy, as deposit?

aidenfry

Hi,

I am using online mortgage calculators,
I have my deposit, help to buy amount and property evaluation.

In mortgage calculators do i add the help to buy amount as part of the deposit amount, or reduce the property value buy the h2b amout?

Seems to make a big difference to repayment costs.

Thanks,
Aiden :j

KPike

Where it says purchase price you put the whole amount that you will be paying for the property.
Deposit is your savings/the amount that you will be putting down against the property purchase.
Mortgage required would be the purchase price minus the deposit.
EG
Your offer of £100,000 has been accepted for a new property
You have saved £10,000 in the Help to Buy ISA (including government bonus)
You therefore require a mortgage of £90,000. Overall loan to value being 90% (mortgage amount, divided by purchase price * 100)

Hope this helps?

kingstreet

aidenfry wrote: »

Hi,

I am using online mortgage calculators,
I have my deposit, help to buy amount and property evaluation.

In mortgage calculators do i add the help to buy amount as part of the deposit amount, or reduce the property value buy the h2b amout?

Seems to make a big difference to repayment costs.

Thanks,
Aiden :j

HTB Equity Loan on a newbuild?

You add the equity loan and deposit together.

Most lenders expect you to add 3% of the equity loan as a credit commitment so it will reduce what you can borrow.

Add ground rent & service charges too, if any.

Are you using calculators only of lenders signed-up to the HTB - EL scheme?

aidenfry

Equity loan is what we are looking for.

Yes my bank is signed up to HTB-EL but there is no option on their calculator to include this.

So if i have 10K deposit and Govt contributs 20K i can put in 30K in the deposit field?

BR,
Aiden

kingstreet

Yes. Every lender on the HTB EL scheme treats the loan as part of your deposit and offers products based on the lower loan to value.

Look for Help To Buy Equity Loan, or Affordable Housing in the product title so you know you are looking at the right ones. Don't look at your lender's "normal" products for that LTV as they won't apply to you.

aidenfry

Thanks,

That makes sense, so what LTV would it put me at? 95% rates? I can't find many ones which say the rate for HTB equity loan.

kingstreet

Why don't you speak to your chosen lender, or an independent broker and seek proper advice?

ThePants999

LTV = amount you're borrowing divided by price of property. You haven't told us either number, so we can't calculate it for you ;-) but I'm sure you'll manage!