Mortgage with Help to Buy Equity Loan

Sunshine012

As I have not found similar threads thisismy story
I have done joint full mortgage application on 13/05 and received mortgage offer on 30/05(valuation 20/05)
10/06 Help To Buy notified me that we have been approved for Equity Loan and received Authority to Proceed via e-mail (which I forwarded to builder and solicitor) and via Equity Loan Portal.

As far as I know my solicitor takes charge from here and I know they are waiting for contracts to be issued by the builder.
Is this regular process?
I am looking for people to join me inmy buying house process.
What happens next?

MsGeorge88

How exciting. i wasn't aware you could get a mortgage offer, before the HTB loan had been approved. We have just submitted our HTB application yesterday, will submit our mortgage application July. Our MA is handling it all.

I imagine for you, your next step is for the contracts to be exchanged.

Are you purchasing a new build? If so when is the property due to be completed?

Sunshine012

New build.
September/October due to be completed
Very excited.
Hope everything goes smooth from now on.

Sunshine012

MA told us that it does not matter what we will do first:mortgage application or Authority to Proceed application but it worries me a bit because I saw a thread that the mortgage application should be done AFTER the Authority to Proceed from Help to Buy.
Anybody with similar experience?
Will this cause a problem?
Solicitor and MA do not seem worried...

Viki2410

Hello,

We are (almost) the end of this process so know how you feel.

We reserved our new build in September last year. We applied for our mortgage first whilst waiting for the Help to Buy ATP to come back (January), it hasn't caused any issues for us at all. Once we had everything together we handed over to our solicitor (Feb) who received the contracts from the builders along with all the searches etc. We then exchanged contracts (March) and everything has been on hold since then. We are due to complete on the 27th of this month.

New builds are a long process, but as long as you have a good solicitor in your corner who understands the processes you should be fine.

Good luck

Viki2410

VGeorge wrote: »

How exciting. i wasn't aware you could get a mortgage offer, before the HTB loan had been approved. We have just submitted our HTB application yesterday, will submit our mortgage application July. Our MA is handling it all.

I imagine for you, your next step is for the contracts to be exchanged.

Are you purchasing a new build? If so when is the property due to be completed?

Just a double check you will not need an extension on your ATP when you get it as we almost did before we exchanged contracts. Our MB said that they usually grant them but sometimes they will check if circumstances change

kingstreet

Sunshine012 wrote: »

As far as I know my solicitor takes charge from here and I know they are waiting for contracts to be issued by the builder.
Is this regular process?

Yes. That is correct.

The searches will be done, enquiries raised and deposit collected from you with a view to exchanging contracts within the target period, usually 28 days.

kingstreet

Sunshine012 wrote: »

MA told us that it does not matter what we will do first

That's right. It doesn't.

If you assume the mortgage application carries costs, you are being advised not to risk potentially wasted cost on a mortgage application until you have submitted your PIF & Reservation to the HTB Agent and received your ATP.

If you don't get approval you would not bother applying for the mortgage.

Sunshine012

I have the exchange deadline in a month and at the moment signing the pre-exchange contract pack.
My concern now is that I am requested to pay deposit but I know that we still have to wait until we will receive the Authority to Exchange from Help to Buy.
Should I wait until we will get it and than pay a deposit?
We got Authority to Proceed,mortgage offer and valuation has been done.
Is there any risk at the moment that our deposit may be lost if paid now?

amnblog

The Help to Buy Buyers Guide says on page 10

You should only submit your main mortgage application once you have the “Authority to Proceed” from the Local Help to Buy Agent.

Make sense to me and we wait for the ATP.

However, having a mortgage offer dated before the authority to proceed won’t be an issue for Sunshine.

kingstreet

Sunshine012 wrote: »

I have the exchange deadline in a month and at the moment signing the pre-exchange contract pack.
My concern now is that I am requested to pay deposit but I know that we still have to wait until we will receive the Authority to Exchange from Help to Buy.
Should I wait until we will get it and than pay a deposit?
We got Authority to Proceed,mortgage offer and valuation has been done.
Is there any risk at the moment that our deposit may be lost if paid now?

You are only handing it to your solicitor.

They won't do anything with it until they have the ATE and are in a position to ask you if you are happy to exchange contracts.