Help to buy advice - not eligible

chrispiec

Hi

first time poster so get easy on me.

My partner and I spoke with a mortgage advisor as we want to buy a new build house. We were advised that we do not qualify as we can afford without as we have no out goings. Just a £40pm hire purchase for a sofa.

We have credits cards but they are always clear. We own our cars outright & we have no loans or outstanding debt.

We have a round £12k saved up but to buy the house we want we will need £20k so we have a 10% minimum mortgage and just get a 90% mortgage.

My question is

If we were to say get new finance on cars and a loan etc and therefore more outgoings would this make us qualify for the help to buy?

Thanks in advance

Chris

PrettyFlower90

What exactly do you mean by not qualifying for help to buy? And help to buy what? Help to buy mortgage guarantee scheme or help to buy equity loan? Maybe I've misunderstood, but no idea how you can't qualify in principle to purchase a new build house?

JP1978

PrettyFlower90 wrote: »

What exactly do you mean by not qualifying for help to buy? And help to buy what? Help to buy mortgage guarantee scheme or help to buy equity loan? Maybe I've misunderstood, but no idea how you can't qualify in principle to purchase a new build house?

When we started looking at moving it was a new home & the help to buy scheme that got us looking. But, as we had 40k + in equity against a purchase of circa £200k, it was deemed we were not eligible. If we were going for a more expensive home, the deposit would have made less a dent and so may have been eligible.

I think that is what the OP is getting at

PrettyFlower90

Ah right sorry, so the OP may have too much of a deposit so they don't need help to buy?
I got from the post that they were looking at a new build house and they weren't able to look into getting it. They also mentioned 10% deposit which isn't that big really i thought.

chrispiec

Ok I will explain more

In Scotland if the buyer has 5% dep then the government give 15%. But we were told that we earn too much and do not have enough outgoings to justify them giving us the 15%.

We would put up £10k and the government would put up £30k making 20% of £200k.

The mortgage advisor suggested If we had more outgoings. Like car payments, loan payments or credit card bills. Then we would qualify.

She advised that the rules had been tightened up as before pretty much everybody who applied received the 15%.

kamdeux

Seems an odd one needing to take on more debt to qualify for affordability, since you have 12k now how long would it take for you to save the other 8k to get to the 20k 10% for a regular mortgage?

Are there any family members who could maybe gift the last 8k to you.

PrettyFlower90

So it's the help to buy equity then you mean, I live in Scotland so I understand that. However I have never heard of not having enough "outgoings"/debt means you are not eligible.. is the advisor saying your credit report is weak maybe? Which means you can't get a bigger mortgage? At the end of the day, help to buy mortgages are there to help people get on the ladder, but you can still go for a regular mortgage.

I'm just still struggling with the not eligible for anything coz you don't have debt being paid off..

chrispiec

No we didn't even get to the credit check.

Yeah it seems a bit mental to have to in lots of debt to get approved.

if we were to buy a house at £230k which is the max until April 2017 then we would be approved but as the house we like and want is £200k she advised that using the help to buy calculator we can easily afford a mortgage of £200k.

She said if we had more outgoings then this would bring down our affordability and then possibly we would qualify.

I was hoping there was an advisor who deals directly with this kind of thing to advise if we increased our outgoings would we qualify. It would make the mortgage much more affordable.

It will take us another 8-12 months to save up the extra £8k.

JP1978

Was it a banks mortgage advisor or an indy (that can deal with HTB schemes)?

If the former, try to find an Indy.

chrispiec

Was an independent advisor called first mortgage who advised.

JP1978

Chrispiec wrote: »

Was an independent advisor called first mortgage who advised.

Ha, yes, we have just used them for our mortgage.

Not a Muir Home is it by chance?