Help to Buy

dannyrst

Has anyone gone through help to buy, where government lend you 20% to add to your 5%? Specifically with Redrow? On the application it asks for the sellers conveyancer, do you just put Redrow?

There is also a section asking for earnings and outgoings, which isn't a required section. Do they ask for this afterwards anyway if you leave it blank?

Thanks.

dannyrst

I should add that I asked redrow and they said they have their own legal team?!

kingstreet

The PIF has to be fully completed and the information therein must match the HTB Affordability calculator. If you try to submit it without income data it will be rejected immediately.

It is normal for the developer or your mortgage broker to complete the PIF and submit the PIF & Res to the HTB Agent.

dannyrst

I don't get why you can submit the application without that info then if they'll just reject it. Other sections are required before you can progress. Weird.

kingstreet

How can the HTB Agent confirm affordability if you don't provide the income data? The entire form has to be fully completed and any area where no data will be entered is to be marked N/A.

I've got PIFSs for Orbit, Radian and BPHA in front of me and none suggest any section of the form(s) can be ignored. FWIW BPHA's has an asterisk against mandatory items and every one on the form is mandatory.

The HTB Agents are some of the most nitpicky pedantic outfits I've ever come across and I work with mortgage lenders!!

BTW all the information required for the property/solicitor section should be on the reservation.

dannyrst

I'm only saying what I can see. This is the first time Ive done any of this...

I'm not sure why HTB need to approve my affordability if the lender is doing that already? But if that's the process then obviously I'll follow it.

Thanks for the help!

kingstreet

You have to satisfy the Government's affordability calculator (HTB AC) which can be found on many HTB Agents' websites and you also need to satisfy your lender's affordability requirements.

This (HTB AC) calculator uses max 4.5 x income, max 45% debt to income and uses a mortgage rate of 4.8% when many lenders will actually lend more.

You need to work from the lowest output of the two to ensure you will qualify for the required HTB equity loan amount and mortgage amount. It's worth knowing many lenders accept child benefit and child tax credits. The HTB AC doesn't!

Hopefully, you will view this as helpful information coming from someone who has submitted hundreds of HTB PIF/Res forms & HTB ACs to different HTB Agents in the four years HTB has been around.

I'm trying to help you avoid the frustrations repeatedly reported on here from incomplete/"unaffordable" PIFs. They will take their allowed four working days to tell you what is wrong, then take another four working days to report your next amendment.