DIP: LTV calculation - Can you factor in HTB equity loan?

King_Henryviii

Hi all

I applied for a mortgage in principle with Halifax and got accepted. However they have based it on an LTV of 75%.

This means that I would need to increase my deposit to fall within the terms that they have given in the DIP. I don't want to do this since I'd need to reallocate money from e.g. stamp duty fund/other investments.

My question is, since I am a FTB and plan to use the equity loan scheme, when I come to do the full application, can that form part of the deposit they are requesting in the DIP?

thanks

SuboJvR

I’m not sure with Halifax but Santander certainly treated us as 75% LTV customers when using Help to Buy. We went with a broker, check with Halifax but isn’t this sort of the point of HTB?

King_Henryviii

Thanks for the response. I think you are right about that being the point of HTB - I guess I was just expecting some reference to it at some point in the application. I guess I need a broker.

Thanks again - answered my question

kingstreet

In the broker system, you choose shared equity, 80% share and enter 3% of the equity loan as a cost in affordability.