Help to Buy Equity loan query

Ms_Rosie

Hi MSEs,

I'm new to this forum, so apologies if this question has already been asked...I'm looking to move to a bigger property and am wondering if any of the government schemes are an option.

We've been approved for a £215k mortgage which, combined with the estimated equity in our existing home of £45-55k (depending on what price we eventually achieve) gives a budget of £260-270k (already accounted for fees etc elsewhere). We would really like more space than we have in our current 3 bed, however in our area, that budget doesn't quite stretch to a 4 bed property, which are priced around £300k.

My question is, would we be eligible for the Help to Buy equity loan scheme, and if so, could we put down a greater than 5% deposit to enable us to reach £300k?

So we'd have 15% deposit (£45k) + 20% government loan (£60k) + 65% mortgage (£195k) = £300k 4 bed dream house :beer: ??

Are you allowed to do that? Or is it just for helping you get to 25% deposit?

TIA

kingstreet

The minimum deposit is 5%, not the maximum.

As the minimum mortgage is 25% of the purchase price of the newbuild property, you could put down 55% deposit and have a 20% equity loan.