Mortgage Help Needed

skylineonfire

Hello all,

I'm looking at buying a £315,000 new build house. We went to Halifax to apply for a mortgage, and initially we were offered a maximum mortgage of 243,000, which would easily cover the %75 we need, as we intend to use help to buy 20 percent and our 5 percent deposit.

The mortgage advisor then realised we were using help to buy, and put the help to buy loan into the calculations as an outgoing, i.e a shared equity property. This brought down the figure they will lend us to £230. Meaning we would have to put at least another £6000 on our deposit.

Is this normal to include the help to buy loan as an outgoing that will lower your total amount allowed to borrow?

For some background my partner and I have a combined income of £51,000. No major outgoings at all, pretty much perfect credit ratings, no significant credit card debt (we agreed to clear them immediately from savings regardless).

I then spoke to New homes mortgage helpline on the recommendation of my house builder and the lady said after doing her affordability check which we easily passed, Santander would offer us up to 250.

I neglected to ask if that is taking into account the equity loan or not, or if that is even something that is done?

Any advice would be really helpful its extremely stressful....

Thank you.

LRmortgage

Yes all lenders will take the HTB commitment into their calculations.

The difference you are seeing between Halifax and Santander is just that each lender has its own way of calculating affordability and so if you do 10 lenders calculators you will probably get 10 lending amounts.

You should check whether the HTB has been included in the Santander calculation, the answer seems a little high to me based on your basic details here.