Help to buy mortgage

coolpasty

Hi there,

I am looking at selling my house and moving to a new build using a help to buy mortgage. I have been told that I cannot find out if I can get a new mortgage until I sell my current property.

I have talked to a broker over the phone and they have said with the figures I have given them that it shouldn't be a problem but its the whole "shouldn't" that is worrying me as I don't want to waste other peoples time.

Can anyone confirm this information I have been given for me please?

Thank you in advance.

Verix

You can't get a mortgage offer issued and help to buy approved until you reserve the property because the HTB agent will need a copy of the reservation form. Developers are unlikely to allow you to reserve until you have got a buyer on your property.

That said, you can get a mortgage agreement in principle/decision in principle to confirm that you should be able to get a mortgage approved but unfortunately nothing is guaranteed until you have the keys to the house in your hands.

Good luck with it.

kingstreet

As Verix said, you can have an agreement in principle and HTB affordability confirmed now and that should be enough to tell you you will be able to proceed when you have a buyer.

sal_III

If anything "shouldn't be a problem" should be reassuring. Meaning that the broker understands the situations is out of their hands and fully at the Lenders discretion.

It's when they start "guaranteeing" you something that's out of their hands like "You will get mortgage 100%" that you should worry.

Even if everything is "kosher" on your side you might still get "down valuation" on overpriced new build and end up without mortgage.