Help to buy loan declined help

Neesh01

I applied for a equity loan despite having 5 percent deposit was declined
Reasons were
Credit loan 3000
Car finance payments 300 per month
Remedies offered deposit around 20000 which 20 percent? Future job progression as a doctor not considered I work part time as a junior doctor purely buying to make my son happy as he needs a garden and has ASD.
Now question is if I lie putting new deposit as what they suggest will it appear on the authority to proceed form??? Combined Income is 34000 but child tax credits are not considered for equity loan so probably that’s why got refused. At time of mortgage DIP got approved as they do consider them

KatrinaWaves

If you lie it is mortgage fraud and of course it will come to light. You will be approved for HTB on the condition you put down 25% and it’ll be very obvious when it comes to proceed that you only have 10%

Does your salary support a 95k loan? The press is always awash with the low pay of junior doctors and you only work part time, so even less, plus you have a car payment which will be similar to your mortgage. Do you have a partners salary to consider too? Your progression is not counted, it’s a possibility and may never happen.

GoingOn30

How long until your car finance is paid off? 300 a month is a quite a lot for a part time salary.
How old is your son? Are childcare costs going to decrease any time soon?
How long until you progress onto the next step of the pay scale?
You need to work on paying off the £3000 debt also.

da_rule

Yes it will and you’ll be committing fraud. Also, they will want to see proof of funds at some stage, so unless you have an account with £20k sat in it then you may find that difficult to provide.

Your solicitor acts not just for you but for your lenders as well (be that mortgage and/or Help to Buy). Therefore they would be duty bound to report the discrepancy. There may then be an investigation and if it is proven that you purposely set out to mislead them in order to gain the money then a prosecution may follow. I know this sounds extreme, but you seem somewhat blase about the issue. Also, as a doctor, I doubt your regulator would be too pleased about you blatantly lying, as I know honesty is one of the GMC’s core principals.

kingstreet

The PIF contains the purchase price, deposit, mortgage amount and equity loan amount. They all appear on the ATP.

Your solicitor has to submit valuation, mortgage offer and other docs to the HTB Agent to obtain the ATE, Authority To Exchange.

Your "problem" will then come to light when you have spent hundreds on fees...

Neesh01

Thank you for replying I progress as a GP trainee around August 2020.
More than wage they were concerned about the HP payments. I do get additional income in the form of DLA child tax credits don’t count but get them and child benefit so combined income is 34000

Neesh01

I thought so. Thank you for your advice that’s why I al here I don’t want to lie. Been honest throughout have decision in principle from nationwide so could get mortgage alone rather than equity loan but then I fear I would struggle. I don’t know if doing locums would increase the 4.5 ratio. I fear the property will go by time I get enough salary slips only reserved till end of feb.

Neesh01

Yes I am an honest person so please don’t report me to the GMC. Thats why anonymous however My patients get best standard of care. Committed as a doctor so please don’t worry. I am inviting people for any suggestions that might help. that’s why I didn’t lie about the car finance payments which I was advised to do by financial advisor in the initial free consultation and even the equity loan officer said hm you’ve have put these car finance payments?? I told them I couldn’t lie about this as it’s on my bank statements and why should I anyway?? I am just annoyed on not being able to take advantage of the scheme am a single parent. It’s a shame this calculator of theirs doesn’t take into account doctors ability to do locums (100s are available) and grade progression which in my case is every 21 months unless I am
Comfortable with doing more 🤔

Neesh01

That’s exactly what I thought. I have been honest so far as I have a conscience as well as I am truthful by habit. I just simply wanted to take advantage of the scheme as a first time buyer. I will probably have to ditch the reservation fee I’ve given to reserve the property. I do have a DIP for the loan required with nationwide, sent them
All my wage slips statements too, but think would’ve been more comfortable if I could’ve got the equity loan. The mortgage payments increase considerably without the equity loan. Thank you for contributing any further advice would be appreciated.

Marvel1

Could your ent somewhere with a garden?

When does your car finance end? If by end of year, or early next year, this will help.

KatrinaWaves

Neesh01 wrote: »

Yes I am an honest person so please don’t report me to the GMC. Thats why anonymous however My patients get best standard of care. Committed as a doctor so please don’t worry. I am inviting people for any suggestions that might help. that’s why I didn’t lie about the car finance payments which I was advised to do by financial advisor in the initial free consultation and even the equity loan officer said hm you’ve have put these car finance payments?? I told them I couldn’t lie about this as it’s on my bank statements and why should I anyway?? I am just annoyed on not being able to take advantage of the scheme am a single parent. It’s a shame this calculator of theirs doesn’t take into account doctors ability to do locums (100s are available) and grade progression which in my case is every 21 months unless I am
Comfortable with doing more 🤔

You need to get new people advising you if everyone around you is suggesting lying and fraud...

They don't take into account progression as you could quit or get struck off tomorrow. Same with any job, I could get a better job tomorrow paying 2x as much, or I could be made redundant. They take it on what is happening NOW, not tomorrow, as that could be positive or negative.

If you are doing locum work, then you will have payslips showing that. You cannot lend money on a promise you will do something in the future.