help to buy > help to buy

kartingmad

Hi All

We are looking at moving from our home which is currently under help to buy equity loan into another new build with help to buy equity loan

I have read on the Help to Buy site that this is possible to do.

The question I have is for example:

Our house sale - £200,000
Mortgage payment - £125,000
Help to Buy repayment - £40,000 (20% of sale)

Total made on sale - £35,000

So then we buy a house for £200,000 under help to buy:

House Price - £200,000
Help to buy Loan - £40,000
5% deposit - £10,000

Will help to buy allow us to do this hence the large amount of money that has been made on the property and only putting down a 5% deposit of £10000. So effectively we have £20,000 left after some fees.

I cannot find anything to say that we cannot have excess money to do help to buy equity loan.

Any ideas

Thanks

Kitten868

I really doubt it - it's based on affordability. You can afford more now and have a bigger deposit so no. We weren't eligible as lenders would lend the full mortgage amount.
Do these figures account for the profit made on the property that you need to pay back?
Speak to a broker.

kingstreet

As long as you put down the minimum 5% deposit, buy for £600k or less (England), meet affordability and this is the only property you will own from completion, there will be no issue.

No-one, neither lender, solicitor nor HTB Agent is going to tell you you have to reinvest every penny of your equity.

In fact, the post-sales HTB Agent you deal with on the sale will be different to the area HTB Agent you deal with on the purchase so chances are neither will be aware of the other.