FTB with HTB New Build Scotland

applebite

Hi

I've had some conflicting advice about a mortgage. I've seen a off the plan new build apartment that I would like to reserve. It's at fixed price for £152k.

I would be looking to use the HTB new build scheme in Scotland which would give me a 15% deposit to put towards it.

I had seen a different flat back in october that was roughly the same price and went to see a mortgage advisor who said it wouldn't be a problem but I would have to put in slightly more that a 5% deposit.

However, this new Mortgage advisor does not think it is going to work. I earn £28k annually and the only debt I have is a pcp car payment for £289 and no dependants.

He is saying that he was only able to get one offer for £109k, then he got back to me to say that he could get an offer from `halifax for £119k but when the application went in I would have to submit an appeal on the basis of my car because it will get rejected due to the balloon payment?! Previously he had said it would get rejected due to the unsecured debt but I queried that because I thought pep car debt was secure because the car would be collateral. I have never heard anyone else ever say anything about this.

Does anyone have any advice on this?

Many Thanks

Sibz

It sounds like you are borderline inelligible for the mortgage amount based on your income (usually max mortgage lending would be 4 x your salary which on above figure is £112k

15% HTB loan = 22800
5% Deposit = 7600
affordanility = 112000
Total = £142'400

Leaving you just under 10k short? and that's without car payments factored in... Is there a deposit incentive from the developer? If the bank are willing to lend slightly above due to your low total outgoings this would bring you closer but they'll also factor into their decision things like council tax etc... Just sounds like the numbers - have you asked the advisers you've seen for a breakdown of how they're working it?

There's a help to buy calculator on the HTB Scotland site you can download that might help you understand how its worked. That along with affordability calculators on most lenders sites...

applebite

Thanks I didn't know about the calculator. I've just filled it out though and its saying I would be eligible with their rule of thumb being 4.5 but I understand thats not to say I would get offered a mortgage from a lender of that. I'm constantly on affordability calculators and they range from £109-122 so I've never really trusted them.

Unfortunately no incentive as incredibly popular and next phase is most likely to rise in price.

What confused me was the property is due for completion quarter 3, but if i went for a full mortgage application just now surely that would have expired by the time I completed?