Question about Help to Buy gov scheme

doogs

Hi folks

I recently received my mortgage in principle of £179,000.

I've found a new build that I'm interested in which is priced at £181,500. Am I right in thinking that I would be able to buy this as the mortgage would be less than £179K.

I've worked out my 5% deposit would be £9,075
Government would help by paying 15% £27,225

Which would leave £145,200 which I would take out the mortgage for.

I just want to make sure I've got my sums right.

Thanks in advance!

kingstreet

Affordability for HTB mortgages is different, if in E&W.

Lenders require 3% of the HTB loan to be taken into account so your maximum mortgage will fall. Ground rent and/or service charges are also taken into account.

You also have to satisfy the Government's HTB affordability calculator.

doogs

kingstreet wrote: »

Affordability for HTB mortgages is different, if in E&W.

Lenders require 3% of the HTB loan to be taken into account so your maximum mortgage will fall. Ground rent and/or service charges are also taken into account.

You also have to satisfy the Government's HTB affordability calculator.

I'm in Scotland.

Pixie5740

Is this the Help to Buy (Scotland) Affordable New Build Scheme?

Which lender has given you the DIP?

You are correct in that if you put down a 5% deposit and the Scottish government has a 15% equity share (not equity loan) then you need a mortgage to cover the remaining 80% of the purchase price. Whether you will be offered a large enough mortgage is another matter though.

doogs

Pixie5740 wrote: »

Is this the Help to Buy (Scotland) Affordable New Build Scheme?

Which lender has given you the DIP?

You are correct in that if you put down a 5% deposit and the Scottish government has a 15% equity share (not equity loan) then you need a mortgage to cover the remaining 80% of the purchase price. Whether you will be offered a large enough mortgage is another matter though.

That's correct.

Halifax gave me the DIP which was £178,000.