Help to buy advice

jonny411

Hi all,

Me and my partner have been looking at the help to buy equity loan however i was looking at the possibility of only getting a 10% loan from the government rather than the maximum 20% as i have a deposit higher than 5%.

Our joint household income is £44368 and the house we are looking to buy is a new build worth £190000. Our total combined direct debits each month is around £750. I have a deposit of £30000 to put down.

Do you think that its feasible that we will able to borrow enough so that we don't need get a help to buy loan or is it realistic that we will have to get a help to buy loan. I did even think about just taking a 10% HTB EL rather than the full 20% or that it is easier to pay off or remortgage after the 5 years interest free is over.

Any advice would be much appreciated!

amnblog

Yes, from what you have said here you should be in a position to purchase with a 10% H2B Equity Loan, or a 20% H2B Equity Loan as you wish.

haras_nosirrah

Depending on your situation you may be able to avoid help to buy altogether and buy outright.

[Deleted User]

jonny411 wrote: »

Hi all,

Me and my partner have been looking at the help to buy equity loan however i was looking at the possibility of only getting a 10% loan from the government rather than the maximum 20% as i have a deposit higher than 5%.

Our joint household income is £44368 and the house we are looking to buy is a new build worth £190000. Our total combined direct debits each month is around £750. I have a deposit of £30000 to put down.

Do you think that its feasible that we will able to borrow enough so that we don't need get a help to buy loan or is it realistic that we will have to get a help to buy loan. I did even think about just taking a 10% HTB EL rather than the full 20% or that it is easier to pay off or remortgage after the 5 years interest free is over.

Any advice would be much appreciated!

Why are you using help to buy at all?

jonny411

Thanks for all your replies.

My partners credit rating isn't great so we were thinking about the H2B in case her credit rating brings down what we can borrow to below £160,000. Hopefully our deposit is big enough to avoid this.

We are meeting a mortgage broker this weekend to see what we can borrow so just thinking about possible scenarios. That's we were thinking that with a 10% H2B EL we would only need around a £141,000 mortgage which hopefully should be fine.

sal_III

I don't think that the credit file has any/much bearing on the amount you can borrow, only on the product/rate you can get.

If you can afford buying without HTB EL - don't use it. Plain and simple.

If you end up using it, you can definitely go for 10%, it doesn't have to be the maximum.

jonny411

sal_III wrote: »

I don't think that the credit file has any/much bearing on the amount you can borrow, only on the product/rate you can get.

If you can afford buying without HTB EL - don't use it. Plain and simple.

If you end up using it, you can definitely go for 10%, it doesn't have to be the maximum.

Thanks for that sal_III. I must admit i was always under the impression that your credit rating affected how much you could borrow so that's a bit of a relief. Hopefully we can borrow enough without the need of the H2B loan.

jonny411

Deleted_User wrote: »

Why are you using help to buy at all?

It was purely a back up option in case we couldn't borrow enough.

As a mortgage advisor, based on the figures i provided, do you think we have a good chance of not having to use the H2B?

amnblog

Yes, you can most likely purchase without using the H2B scheme