Switch from HTB to 90%

JohnCurtis81

Hi,

I am in the mortgage application process with Halifax and the valuation on the property has just been done, we are expecting the actual mortgage offer in the near future.

The problem is that there were some delays with the property developer (Taylor Wimpey) and this has pushed our entry date past 31st March which means HTB will no longer be available.

We will need to change our mortgage application to a 90% mortgage and I have a couple of questions regarding this.

1. Is the lending criteria different between HTB (with a 5% deposit) and 90%?
2. I don't currently have the full 10% deposit at the moment but will have it before we move in, will this be a problem?

Any advice would be appreciated.

Thanks

Thrugelmir

What level of deposit does the developer require on exchange of contracts?

JohnCurtis81

Hi, on exchange of contracts we are to pay £2000

ap1985

Forgive me if I am confused. But what you are referring to is the H2B equity loan scheme which I understand is still open and valid. Is it not the H2B mortgage guarantee scheme that is closing down? Which one did you apply for?

JohnCurtis81

Sorry, I dont think I was very clear in my first post.

It is HTB Scotland which may be different, the current scheme allows you to pay a 5% deposit on a house valued up to £230k, with the government contributing a further 15%, this ends on 31:p March 17 and then the new scheme starts. With the new scheme the maximum property value will drop to £200k.

Our entry date was originally March 2017, however this has now changed to May. As our property is valued at £212000 we wont qualify for the new scheme and need to go with a 90% mortgage.

I was therefore wondering if the lending criteria was more relaxed or strict depending on whether its HTB or 90%.

Thanks