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Help to buy, as deposit?
aidenfry
Posts: 3 Newbie
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
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
0
Comments
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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?0 -
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
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?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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,
Aiden0 -
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.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
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.0 -
Why don't you speak to your chosen lender, or an independent broker and seek proper advice?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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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!0
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