Help to buy with larger deposit

Countryfile75

Hi folks

My partner and I are looking at the help to buy scheme in London.

We currently own a property with a value of 340k which consists of about 140k outstanding mortgage and 200k equity.

Using help to buy would it be possible, for example, to look at properties for 500k using a 200k deposit, 175k loan from Help to Buy and a mortgage for 125k. I understand that the mortgage must account for a minimum of 25% of the purchase price. Is this correct?

My partner currently earns about 28k and although the mortgage would be a joint one, as I am not currently working and won't be until we are in London, the mortgage would be based on just the one salary.

We have the savings to cover all the necessary moving costs, stamp duty etc. We also have no debts or children.

Any help/advice would be much appreciated.

csgohan4

your effectively taking out a 300k mortgage/loan on only 28k income, unlikely but a good broker will be able to give you more options


how do you plan on paying the HTB loan after 5 years? The interest will be added if you don't pay it off.

Countryfile75

I'll be earning between 25-30k as well, once in London. I just wanted to know if the mortgage could be achievable on just one income? for the time being at least. Repayments on the mortgage with a decent interest rate, due to a larger deposit should be around £600 per month, so when the HTB loan kicks in, repayments would still be affordable.