Help to Buy Ending

kw2791

I am a first time buyer and have been saving for a 5% deposit with the hopes of taking a HTB 95% mortgage early next year.

A friend made me aware that the government are withdrawing the Help to Buy mortgages at the end of the year. From a bit of reading online, I can see that not all lenders participated in this government initiative but still offer a 95% mortgage.

What I am looking for some advice on, is whether it will be likely that 95% mortgages will still be around as a product in 2017, or do I need to prepare to be saving 10% instead?

kingstreet

There will be non-HTB Mortgage Guarantee products around, as there are now.

What we don't know is if your case is strong enough to meet lender criteria for a 95% mortgage, so speaking to an independent broker to establish your position would be a good idea, sooner rather than later.

ap1985

You can still go for the H2B equity scheme which you can do with 5% deposit. The H2B mortgage guarantee scheme is ending in December I believe.

kingstreet

ap1985 wrote: »

You can still go for the H2B equity loan scheme which you can do with 5% deposit.

If he/she wants a newbuild, that is.

ap1985

kingstreet wrote: »

If he/she wants a newbuild, that is.

That is correct (forgot to mention that bit!)

kingstreet

You'd be amazed even three and a half years in, we still get asked if you can use equity loan on second-hand property.

I always use every opportunity to get the newbuild bit in as early as possible to avoid any potential later problems.

kw2791

Not looking for a new build unfortunately. A few people have mentioned the lift scheme which is available here in Scotland, where the Government would part own the property, but I'm not so keen on that idea.

Thanks for the advice, I will seek out a financial adviser and take things from there.

stator

As long as nothing major happens to stop the banks lending on property I predict there will be plenty of choice available to you.

amnblog

I suspect those providers offering 5% deposit outside of H2BGS may be pulling back or out early in 2017 as they get swamped with applications.

Thrugelmir

kw2791 wrote: »

What I am looking for some advice on, is whether it will be likely that 95% mortgages will still be around as a product in 2017,

That's in part why the HTB scheme is being withdrawn. Lenders are now in a position to fund this segment of the market themselves.