We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
How much can you borrow for Help To Buy
Options
Bayy
Posts: 13 Forumite
Does anyone know what they multiply your income by for a Help To Buy? I have been told it is less than a normal mortgage
I am applying with Halifax
Thank you in advance :j
I am applying with Halifax
Thank you in advance :j
0
Comments
-
-
But what is the maximum based on numbers?
My numbers are £40k self employed plus 20k dividends on a LTD company0 -
To use the HTB scheme, buyers cannot have a main mortgage that is more than 4.5 times their household income.
In comparison, for a non HTB mortgage it could potentially go up to as much as 5.5x (depending on the specifics of the case)0 -
I would not simply use 4.5 x income.
I would complete the HTB affordability calculator which allows you to enter income in the right places, credit commitments and also takes into account debt to income ratio.
You can download it from here;-
https://www.gov.uk/government/publications/homes-england-help-to-buy-equity-loan-calculator-and-guidance
When using HTB, you would use the lower of the HTB and lender calculator outputs when applying.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 -
That was very helpful thank you. On the calcukator it says annual gross so would this be the profit of my LTD company before tax or after tax?
I am also adding my salaried job to this too
Thank you0 -
On the calculator it says maximum 4.5?0
-
You would enter as basic salary;-
gross annual basic employed salary
director's remuneration
dividends
self-employed or partner's net profit.
Overtime, bonus or commission would go in the lower box unless contractually guaranteed.
Ignore child tax credits and child benefit as they aren't counted.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 -
Yes. But it's not 4.5 x everything and you can be within that but exceed the 45% debt to income max.On the calculator it says maximum 4.5?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
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 351.2K Banking & Borrowing
- 253.2K Reduce Debt & Boost Income
- 453.7K Spending & Discounts
- 244.2K Work, Benefits & Business
- 599.3K Mortgages, Homes & Bills
- 177.1K Life & Family
- 257.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.2K Discuss & Feedback
- 37.6K Read-Only Boards