New build but not necessarily HTB

samsam89

Hi all.

My Partner and I are looking to upsize and have hit what may be a potential stumbling block.

We've had a meeting with Halifax and they have said we could borrow up to £156k (with current car on finance) or £176k (without car finance). We have around £50k equity to put down on a property and have found a selection that are set to be built starting at £260k.

The mortgage adviser at Halifax said we could simply utilise the HTB scheme to reach that sort of purchase price. I've done a little digging and it seems the builder of the properties we're interested in isn't registered for HTB. This obviously isn't what we're hoping for and was just wondering if there was any reason a builder wouldn't be signed up for the scheme. I don't have a direct line to the builder as they are being marketed by an agent.

Is there an alternative tothe HTB scheme that could be applied? A little frustrating as our monthly mortgage payment would actually work out lower in the more expensive home than our current home as the interest rate would be so much lower.

kingstreet

A builder can choose to offer HTB or not.

Sometimes, the admin requirements outweigh the benefits for a smaller builder.

There is no alternative if the builder doesn't offer its own shared equity deal.

Cakeguts

If you want to buy a house why did you get a car on finance? It doesn't make sense. The money that you are paying to finance the car could have been going into a savings account. Don't they have cheap second hand cars where you live? You can also see the difference that the car finance makes to how much you can borrow for a house.

How much do you want to move to a bigger house? The simplest way is to get rid of the car on finance. If you are tied into that you will have to wait until it finishes. Car finance is such a waste of money.

samsam89

Yes we needed the car on finance, but that is not my main concern. We had children and needed a bigger, safer car as we had to replace one that went wrong. It is on a pcp contract so can "technically" hand it back if needs be. I'm aware of the pitfalls and consequences of having a car on finance and the impact on borrowing.

Would it be worthwhile visiting a broker to seek a potentially higher borrowing amount? Or would they likely give us the same sort of figures as Halifax. We are potentially £20-30k short which is frustrating.

We don't need to move to a bigger house but we do rather want to as ours is a bit of a squeeze now with 2 children.

Leo2020

Whether you can borrow a higher amount or not you should see a mortgage advisor. Chances are the offer you are getting from Halifax is not the best. Yes you will have to pay for their advice but that is offset by the amount they will most likely save you on your mortgage.

I know a few people who just go with what their bank have offered, I have tried to explain that if you can get a cheaper deal (lower interest and or fees) then it will save a small fortune over the years but the response I usually get is I know I can afford X amount a month so it doesn't matter. It doesn't matter that you are over paying by thousands and thousands?!

A house is a big purchase and you should reduce what you have to pay whenever you can, this is not like saving a few pence on carrots by going to a different shop.

We have reduced the length of our mortgage by overpaying where we can and by getting the best mortgage deal for us when it has been up for renewal.

samsam89

Leo2020 wrote: »

Whether you can borrow a higher amount or not you should see a mortgage advisor. Chances are the offer you are getting from Halifax is not the best. Yes you will have to pay for their advice but that is offset by the amount they will most likely save you on your mortgage.

I know a few people who just go with what their bank have offered, I have tried to explain that if you can get a cheaper deal (lower interest and or fees) then it will save a small fortune over the years but the response I usually get is I know I can afford X amount a month so it doesn't matter. It doesn't matter that you are over paying by thousands and thousands?!

A house is a big purchase and you should reduce what you have to pay whenever you can, this is not like saving a few pence on carrots by going to a different shop.

We have reduced the length of our mortgage by overpaying where we can and by getting the best mortgage deal for us when it has been up for renewal.

Thanks. And thank you for a non judgmental reply. I think we will book in to see a broker. Just hoping we can borrow that bit more money in order to purchase what would be the perfect home for us.

Cakeguts

I would suggest that you get rid of the car because paying for that is going to reduce what anyone will lend you even if they lend you more. Aren't there any places selling safe second hand cars? It seems a shame not to be able to get the house you want for the sake of a car?

samsam89

Cakeguts wrote: »

I would suggest that you get rid of the car because paying for that is going to reduce what anyone will lend you even if they lend you more. Aren't there any places selling safe second hand cars? It seems a shame not to be able to get the house you want for the sake of a car?

I absolutely agree with you in that respect. I'd like to find out if we could possibly afford the house we want before getting rid of the car though. If we got rid of the car and took a new mortgage with Halifax then we would need to achieve an additional 20-30k through saving (unlikely in a short time frame) or borrowing more. Not being a mortgage expert, I'm not sure if the latter is possible or realistic. I suppose that's where a broker comes in...?