HTB Question

hollip0p

Hi all,

This is probably a really silly question, but if I am looking at buying a house using 5% deposit, 20% HTB equity loan, do I include both as my deposit when looking at a lenders mortgage calculator?

So if I were looking at a 100k house, do I say I have 25k deposit?

Thanks

kingstreet

Yes.

However, you will typically need to include 3% of the equity loan as a cost in affordability if it isn't mentioned specifically by the lender anywhere in the calculator.

Same with any ground rent and/or service charges.

hollip0p

kingstreet wrote: »

Yes.

However, you will typically need to include 3% of the equity loan as a cost in affordability if it isn't mentioned specifically by the lender anywhere in the calculator.

Same with any ground rent and/or service charges.

Thank you!

So I should be putting 3% of the equity loan under other monthly commitments? So for 20k, 600 a month?

Just want to clarify

kingstreet

3% of £20,000 / 12 = £50.

hollip0p

kingstreet wrote: »

3% of £20,000 / 12 = £50.

You're a star - thank you!