Help to buy advice - not eligible

Thrugelmir

JP1978 wrote: »

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

Then the condition I quoted previously makes even more sense.

MARTYM8`

I love the idea that the Scottish Government is only interested in helping people buy properties who clearly cannot afford to buy them – and not to help people like the OP who actually can.

But if the OP takes on more debts and maxes out their credit cards they will become suitable for government assistance.

What a bizarre era we live in. Pure absolute insanity!

Pixie5740

Have you had a play around with the calculator yourself to see if having loan payments and outstanding credit card balances make any difference to being accepted?

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

I'm not entirely convinced that you taking on debt will improve your eligibility. Is this an independent mortgage broker who has dealt with a lot of HTB cases in Scotland that you're using?

chrispiec

I actually found this calculator yesterday. I had a play around with it. However no matter what outgoings I put in it still advised I was not eligible. No matter if I had little or mega outgoings the amount I was able to afford did not change.

I did have a play around with the nationwide affordability calculator and when I added in things like loans and credit card balances the amount we could borrow dropped down to a round £180k.

Yes all these brokers are 'supposed' HTB experts. Well so they tell me.

sindakit

Keep in mind, there are two HTB schemes in Scotland (technically 4)

One for Affordable homes - making you ineligible due to income
And New Developments - Probably what you're looking for

Did you apply for the incorrect scheme?

https://www.mygov.scot/help-to-buy/


Additional Edit:

On further reading it may be that based on you and your partners income, you can get a mortgage of 200K which makes you ineligible, therefore you do not require assistance.

3.5 * (Salary1 + Salary2) + Deposit is the equation. If this is more than 200k you will be declined.

Calculate your figure. If it is a new build perhaps adding in all the upgrades/extras will push the purchase price above your "affordability limit" without requiring the extra debt you were "advised" to take on. This will require a little extra on the deposit.

A somewhat shady alternative could be increase your outgoing expenditure for your application. Join a gym, get a cinema card, actually pay Experian, upgrade your Broadband or mobile phone. Find things that can be reversed or cancelled after a month or two or at least compare the costs for a year with the benefits of the 30K HTB.