Help to buy and proof of deposit etc

newyorklover81

Hi

I am looking to reserve a new build property. The plot hasn’t been released yet (looking likely to be March)

I am still currently saving in a help to buy isa and also a regular savings account. The plot I want is due for completion August/September.

I will have the minimum needed for help to buy bonus by 1st August and the rest of my 5% deposit by 1st August.

The developer has agreed to exchange on just the reservation fee. I already have my DIP.

I noticed that the mortgage company ask for proof of deposit upon full application. If I reserve in amarch then the developer will likely push for exchange a month after reservation (so April).

My question is at that point I will only be be half way to saving my full deposit. Will the mortgage company accept this or will they want full funds showing as available?

Thanks for any advice

Alter_ego

Full deposit at exchange is normal. You don't prove it you pay it.

newyorklover81

Thanks for your reply

I have spoken to quite a few others and they exchanged on just a reservation fee and didn’t pay deposit until completion. My developer is happy with this as the help to buy isa will keep earning interest.

kingstreet

You need to ask your chosen lender.

There is no "one size fits all" in the sector. Lenders all do things differently.