Urgent mortgage help required please!

bunnymtg

Hi there,

Please be kind! I think we've made a terrible naive error.

We out my husbands flat on the market last week (we reside in this flat). We've had a full asking price offer and we've also made an offer on another house. We are buying bigger as we now have a daughter.

It's all going to be in hubby's name as my credit report isn't the best in the past. That aside, I am a stay at home mum and my husbands income is £58,000 PA plus £5-£10k bonus a year.

We thought the help to buy mortgage guarantee scheme meant te government would provide us with a 20% loan. We've just been told that is not the case and they just guarantee it. I guess the clue is in the name. We're not interested in a new build and there aren't any anywhere near us either.

He will make £70k profit on the flat which fees etc will come from too.

We are looking for a property in the region of £350k. So we are left quite short getting a normal mortgage.
My mother in law is retired yet has almost £500k in the bank. Are there any lenders that could help us with this in mind?
The broker we are using is not great to be honest. He has only just told us about the who help to buy scenario and never once before corrected us!!!

I am on the verge of tears here. Really could do with some sound advice.

Thank you in advance.
Rachel

bunnymtg

Anyone? ��

Trying_to_be_good

Are you suggesting that your Mother-in-Law could lend you the money?

bunnymtg

Hi too Good. Oh no she won't lend it to us. My husband has already asked. But she would be more than happy to act as guarantor if there was such thing?

Her property is only worth around £200k so it couldn't be guaranteed against that.

Today has quite literally been a life changer in the bad sense.

elverson

I think you're confused with HTB Equity Loan:

With a Help to Buy: Equity Loan the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.

You won’t be charged loan fees on the 20% loan for the first five years of owning your home.

Equity loans are available to first time buyers as well as homeowners looking to move. The home you want to buy must be newly built with a price tag of up to £600,000.

You won’t be able to sublet this home or enter a part exchange deal on your old home. You must not own any other property at the time you buy your new home with a Help to Buy: Equity Loan.

https://www.helptobuy.gov.uk/equity-loan/equity-loans/

bunnymtg

I realise that now. Unfortunately. We are now just trying to rack our brains as to what other options we have?

kaylajane

Have a look on Google. There are some guarantor mortgages out there

kaylajane

And find a better broker!

Thrugelmir

Scale back your plans. To something affordable,

firely2327

I must say I agree with the comment of the last poster regarding scaling back your plans. I understand your husband is on a good salary, but unless you're buying in a very expensive city, e.g. London, I don't see why you need to purchase something so expensive if there's only the three of you. It's well above the UK average. I know having a big house is nice if you're planning on adding to the family in the future, but getting in over your head isn't a good idea.


As for the broker, he seems rather incompetent. I bought my first property last year as a solo buyer, and searched this website for mortgage rates before approaching the banks myself. I like the control and wouldn't personally consider going through a broker unless they had a superior deal to offer, which in my case at least was not at all likely. Is there a particular reason why you went the broker route?

bunnymtg

Thank you all.
Unfortunately we are paying home county prices. £350k gets us a modest 3bed mid terrace. You'd be hard pushed to find anything cheaper. This IS the cheap end of the scale. We are just on the edge of London. So no scope to scale back I'm afraid!

Firefly, we went with a broker as we thought it'd be easier! Appears not in our case!