Help to buy mortgage

Rich3436

I am currently buying a new build house using the government help to buy. The home builder has given me a couple of incentives, £3k off stamp duty and £500 off legal fees. Just found out that a neighbor has had the following incentives on a same spec property £6k off stamp duty, £1k legal fees and all integrated appliances. The home builder said this is because we are using the help to buy and the neighbor isn't.

Is this right? It seems like the house builder is penalising us for using the help to buy. Any advice will be great fully received

Futuristic

They can technically do whatever they want, do you know if theres a lot of interest in the property? Do you REALLY want it?

I'd be more inclined to pull out and say you're ready to sign if incentives are matched.

kingstreet

HTB makes no difference, so the builder can give what cash incentives it likes, upto 5%.

Some lenders have issues with type of incentives, or level of incentives. As an example, Halifax permits only 1% of cash incentives when putting down only 5% deposit on HTB Equity Loan.

ceminem

I was offered a Halifax HTB mortgage with 5% deposit and 5% gifted developer deposit. 5% is the limit for incentives for HTB applications apparently.

kingstreet

ceminem wrote: »

I was offered a Halifax HTB mortgage with 5% deposit and 5% gifted developer deposit. 5% is the limit for incentives for HTB applications apparently.

5% incentives are permitted by Halifax, as long as;-

Cash incentives for shared equity applications are acceptable provided the total value of the loan plus incentive together does not exceed 95% of the value of the equity share being purchased.

5% builder gifted and 5% borrower means a 70% mortgage if taken with a 20% HTB Loan.