Help to Buy

Mikeef

Hi,

Looking at help to buy scheme and come across some conflicting advice.

Basically its regarding the maximum deposit you can put down.

I know the minimum is 5% but some lenders are saying max. 10%, some say max 20%, and some say there is no maximum. Is this a lender specific thing.

I'm looking to put down around 33% of the property value. 20% will be from the HTB scheme and the rest mortgage.

Anyone have any idea?

Many Thanks
Mike

kingstreet

The minimum mortgage is 25% of the purchase price of the newbuild property.

You can therefore put down upto 55% deposit on a 20% HTB Equity Loan case.

Mikeef

Thanks. How come for example on natwests website under the criteria for their HTB scheme they say and I quote...
"You have a deposit of at least 5% but less than 10%"

kingstreet

Mikeef wrote: »

Thanks. How come for example on natwests website under the criteria for their HTB scheme they say and I quote...
"You have a deposit of at least 5% but less than 10%"

Are you sure you're reading about HTB Equity Loan as that sounds like the criteria for HTB Mortgage Guarantee?

kingstreet

If this is the page in question;-

http://personal.natwest.com/personal/mortgages/help-to-buy.html

it is headed "All You Need To Know About The Help To Buy Mortgage Guarantee scheme."

Use this site to research more;-

https://www.helptobuy.gov.uk/

Mikeef

Yes that's the one. I've read the government stuff but no mention of min deposit which makes me think it may be a lender requirement.

kingstreet

I can't think of a single lender which limits the amount of deposit on HTB Equity Loan.

The scheme rules require a minimum 5% deposit and 25% mortgage.

This is not the same for HTB Mortgage Guarantee which is designed for those with less than 10% deposit.