Help to buy mortgages

Axel132132_2

Hi,

I'm after a little information. I am looking for a new build home of which I am going to do help to buy.

Are banks more or less likely to lend to help to buy. By this I mean my mortgage company said the bigger the deposit the more chance of getting accepted for the mortgage because the bank has less of a financial risk.

With this, having help to buy gives a 25% deposit. But the Gov secure there 20% on the home. So does this mean the banks are more lenient to lend to help to buy or do you need a better credit rating for help to buy. (I know score means nothing - but is helpful to understand my situation)

I have affordability for 340k, I applied for an old home of £220k with a 10% deposit. The mortgage was accepted with natwest then declined on underwriter due to credit scoring. Since then my score has gone from Very Poor, to Fair. My score dropped to ery poor due to having new financial commitments (I took out a new merc car finance, caravan and loan) this dropped me from 999 excellent to very poor!

When I applied for natwest 220k they declined me at very poor. Now I'm at fair I want to apply again for natwest but on help to buy. That's where my question is, do the bank see new build help to buy as 25% or 5%

Cheers all!

Axel132132_2

The help to buy is 344450 and I will be using a 5% deposit

[Deleted User]

The banks see H2B as 25% as they have the first charge on the property. If the property has dropped 20% in value the bank still gets their money back and the 2nd charge holder (h2b) loses money.

This means it is lower risk for the banks and they score it as a 25% deposit

axel132132

Thanks alot JMA, so more likely to get the mortgage which is great news! Now just going to have to cross my fingers and toes and arms and legs so we can get our DREAM HOUSE!! =D!!

[Deleted User]

If its a case of the score dropping just for credit applications but is otherwise a solid case a lender that allows bdm appeals will be useful. Bdm's are people that support brokers to submit business to their lender. If they agree a case is strong they can sometimes overturn or at least support a manual underwriting.

Some lenders use them and some don't. They can be really useful to have on your side when submitting a good case rhat doesn't quite tick the boxes

Good luck!

Axel132132_2

What do bdms stand for, my credit file is literally spotless, no late payments, no bad credit, no ccjs. I've had 23 financial commitments all paid of early or on time (such as car finance, loans for cars, credit cards etc) but natwest rejected me on credit and the lady from natwest had literally no idea why (this was when my credit was in very poor due to recent financial commitments) now it's up to fair. I cant decide wether to wait till it's up to good or go for it soon! I am on a slight time scale with buying new build but the house wont be ready till october this year!

Thanks for your help