Deposit query

~shoozy~

Hello, I recently reserved a new build with the idea of using help to buy with a 5% deposit. I've just been told my application for help to buy has been refused because my DIP showed a higher amount than the house is priced at, and apparently that means I can afford the mortgage without help to buy.

I spoke to my broker, who advised I switch to a different lender and go for a standard mortgage but for this I need 10% deposit.

When do I physically need to have the 10%?

I was under the impression that I'd need to be able to show the lender that I have the money when I apply for the mortgage, but I'm short on the full amount until the end of this month, when I get paid again.

My parents have offered to give me money towards the deposit, but I'm reluctant to do that as it's more complicated to show the money as it's my mother's "wee stash" as she puts it - ie not in a bank account.

Any help or advice is much appreciated.

kingstreet

Is this outside E&W, or is it shared ownership, because this;-

"my application for help to buy has been refused because my DIP showed a higher amount than the house is priced at"

isn't possible on HTB - Equity Loan. The HTB agent doesn't see your DIP. Only your formal mortgage offer and the valuation report are sent to the HTB Agent by your solicitor ahead of issue of the ATE for exchange of contracts.

~shoozy~

Hi, yes it's in Scotland, part of the documentation to be uploaded is the DIP.