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Help to Buy Equity Loan Advice
mcalutn
Posts: 2 Newbie
Hey,
So I'm having a bit of an issue at the moment buying a new build property with Help to Buy. I've met with a mortgage advisor who has gone through the Help to Buy calculator and mortgage in principle steps with me and found the following:
1. Help to Buy will lend me the 20% equity loan, but are insisting on a 38 year mortgage to meet their debt to income criteria (I would remortgage down to 25 years after the 5 year fixed rate).
2. Banks will lend to me (even as low as 20 year terms) and the repayment is more than affordable (half what I pay in rent) even when stress tested, however, because 38 years would take me into retirement, the banks won't lend on a 38 year term, but would on a 37 year term.
I wondered if anyone had any suggestions to get around this difference of 1 year between the two lenders (that don't include increasing my deposit or buying a cheaper property). It seems so silly when it is essentially very affordable but please tell me if I'm missing something.
Cheers
So I'm having a bit of an issue at the moment buying a new build property with Help to Buy. I've met with a mortgage advisor who has gone through the Help to Buy calculator and mortgage in principle steps with me and found the following:
1. Help to Buy will lend me the 20% equity loan, but are insisting on a 38 year mortgage to meet their debt to income criteria (I would remortgage down to 25 years after the 5 year fixed rate).
2. Banks will lend to me (even as low as 20 year terms) and the repayment is more than affordable (half what I pay in rent) even when stress tested, however, because 38 years would take me into retirement, the banks won't lend on a 38 year term, but would on a 37 year term.
I wondered if anyone had any suggestions to get around this difference of 1 year between the two lenders (that don't include increasing my deposit or buying a cheaper property). It seems so silly when it is essentially very affordable but please tell me if I'm missing something.
Cheers
0
Comments
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The HTB AC is king.
If you need a 38 year term, you're going to have to find a lender willing to do a 38 year term.
The max retirement age allowed under HTB is age 75 and there are at least two lenders who will do this on HTB cases.
We have to do this all the time as HTB and newbuild specialists.
How old are you? Are there other issues you need to disclose?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Hey, Thanks for replying, that makes sense. I'm 32 with a car loan.0
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Your broker is going to have to establish the two lenders on HTB who will accept a term past 70th birthday and their requirements to see if you fit.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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