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Help to Buy and affordability
timeism0ney
Posts: 143 Forumite
A house come up in our area on a help to buy scheme that could be a good fit for us. We're first time buyers looking for a family home and despite 35K deposit we are struggling to find a suitable family sized property in a half decent area due to affordability. Standard advice about Help to Buy schemes is that it's for people who have little or no deposit but would it also work if the issue is affordability? Thanks.
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Not always true, I’m using the help to buy scheme with a significant deposit. I’ve checked the price premium after my low ball offer is not above the local average for size and type of property and the money I am saving on the lower mortgage will go towards a larger deposit when I upsize in 4 years before the equity loan has been paid off. I’ve modelled the figures under a number of assumptions and worked out I come out better off if property prices fall or increase.0
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You need to check lender and HTB affordability to see what is/isn't possible.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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Hi, we are currently in the process of buying a house (our second) and are using a help to buy equity loan and £90,000 deposit so there is nothing to stop you doing this as long as your mortgage is at least 25% of the property price.0
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... and provided you meet HTB and lender affordability for the required mortgage!Hi, we are currently in the process of buying a house (our second) and are using a help to buy equity loan and £90,000 deposit so there is nothing to stop you doing this as long as your mortgage is at least 25% of the property price...I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I can't post links as I'm too new but if you search 'Homes England Help to Buy: equity loan calculator and guidance' on Gov.uk it should bring up publications related to the Help to Buy equity loan. It may provide helpful information about affordability for Help to Buy equity loans and also includes the calculators used by Help to Buy Agents - there is one for properties in London and one for outside London so make sure you use the correct one for your area!
There is also some guidance notes for using the calculator which should explain in a bit more detail how the calculator works and what would be classed as affordable under the scheme!0
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