Help to buy advice - not eligible

chrispiec

No not muir homes. Bellway, Barratt and persimmon are the builders we are looking at!

JP1978

Chrispiec wrote: »

No not muir homes. Bellway, Barratt and persimmon are the builders we are looking at!

Ah, just that I know that Muir use First Mortgage.

Ill go back to my cage now. Good luck by the way, we were confuddled by the fact that if we went into more debt/went for bigger home we would probably be eligible for the HTB.

As we couldnt get the HTB, we have an offer accepted on a ten year old home, that to be honest, is bigger and better quality than the new builds we were looking at and circa 20k cheaper to boot!

chrispiec

Yeah I think that is now what we are looking to do. Just need to save a bit more.

Was just curious if for example I bought a newer car and my partner did too taking out small loans and paying back over 12-18months if this would make us eligible? So hard to get an answer but the adviser did suggest it but would not go into detail as I'm sure she wouldn't want to be seen as bending the rules etc.

Thrugelmir

Is this your issue. In that you could afford to purchase the property through other avenues.

the scheme is only available to those who are unable to afford to purchase the property without the Government purchasing an equity share in the property, i.e. if you are able to afford over 100% of the purchase price through a combination of available mortgage and deposit your application will not be eligible;

chrispiec

We only have a 5% deposit saved. We could go for a 95% mortgage but with monthly payments of 900-1000 pm we would struggle and when interest rates increase those payments can only get higher.

Thrugelmir

Chrispiec wrote: »

We only have a 5% deposit saved. We could go for a 95% mortgage but with monthly payments of 900-1000 pm we would struggle and when interest rates increase those payments can only get higher.

Then the scheme may not be the answer anyway if affordability in the future is a potential issue. As the scheme merely defers a sizable amount of debt for 5 years.

JP1978

Thrugelmir wrote: »

Then the scheme may not be the answer anyway if affordability in the future is a potential issue. As the scheme merely defers a sizable amount of debt for 5 years.

The HTB Scotland scheme has no time limit. The governments stake is returned only upon sale of the property, or they can be bought out (subject to a maximum per year).

http://www.gov.scot/Topics/Built-Environment/Housing/BuyingSelling/help-to-buy

chrispiec

In Scotland the15% only needs to be repaid if you sell the house!

chrispiec

Is there anybody who can advise on this?

If my partner and I take out small loans etc would it make us eligible for help to buy.

I have friends who have a larger joint income than my partner and I but where somehow eligible. They have more outgoings though so perhaps this is why they were approved?

pinkfluffybabe

Chrispiec wrote: »

Is there anybody who can advise on this?

If my partner and I take out small loans etc would it make us eligible for help to buy.

I have friends who have a larger joint income than my partner and I but where somehow eligible. They have more outgoings though so perhaps this is why they were approved?

It would increase your outgoings, so potentially, yes, it could make your financial situation look more amenable for HTB. However, on the other side, it may reduce your mortgage options as you would then have multiple debts to service and some providers would look on that unfavourably.

The system is really silly in a way, as basically you would be better off going for a bigger house to get the help, but that isn't practical mortgage-wise. We were in a similar boat, but our broker managed to work some magic and get it through. It helped that I was two months into a fixed-term employment contract for example.