Help to buy equity loan help!

Kcaj94

Hi all,

Just after a quick piece of advice if possible.



I am looking into buying a New Build Flat under the Government’s Help To Buy – Equity Loan Scheme.



- The property is priced at £150,000.

- I have a deposit of £15,000.

- I also have an agreement in principle with a Mortgage Lender of £105,000.

- This means I require £30,000 from the Government which is 20% of the property price and the maximum they are willing to lend.



I have been informed by some people that the Government are only willing to lend you money based on your wages and I am therefore worried I may not get the full 20% (30k) from the Government?



Can anybody clear this up for me? Is the amount the Government is willing to lend you affected by how much you earn?



Thanks!

kingstreet

Yes, there is a Government HTB affordability calculator, as well as the lender's to satisfy.

https://www.gov.uk/government/publications/help-to-buy-equity-loan-calculator-and-guidance

If the lender you have chosen wasn't aware you were looking at a flat and HTB your affordability may be reduced with the inclusion of the future cost of the equity loan at 3% or 4% and the ground rent & service charges on the property.

You may wish to seek professional help with this, rather than try to complete them the way you think they should be done.

Kcaj94

Thank you Kingstreet