Help to buy weird conditions applied?

MrsLynnie1

Hi, my daughter is buying her first (new build) house on Help to buy.
5% deposit saved, mortgage agreed, and 20% HTB applied, but, apparently the HTB have insisted that before they complete my daughter MUST EITHER get the builder to donate 5% deposit too, or my daughter finds another 5% towards to purchase. 

Any idea why?  My theory is to drive equity into the house price. 

But, can they really insist, given the affordability and conditions of HTB have not only been met already, they are accepted, in that the amount of funds being applied remain unchanged? 

Comms69

Are you sure the lender isnt insisting on this? As opposed to help to buy?

MrsLynnie1

The broker being used says, the building society are happy to lend whats being asked. And HTB amount unchanged. But its HTB insisting on more deposit we are told.

[Deleted User]

Help to Buy has a very easy and black/white calculator that they use.  If the figures are input and there is a red box then h2b wont be approved.   Perhaps she is failing on the h2b calculator and it needs more deposit to get it over the line. 

Mortgage affordability is higher than help to buy affordability.  Very common for mortgage to be approved but h2b declined.  

Although mortgage application shouldnt be going in until h2b is approved really

nik_k

MrsLynnie1 said:

Hi, my daughter is buying her first (new build) house on Help to buy.
5% deposit saved, mortgage agreed, and 20% HTB applied, but, apparently the HTB have insisted that before they complete my daughter MUST EITHER get the builder to donate 5% deposit too, or my daughter finds another 5% towards to purchase. 

Any idea why?  My theory is to drive equity into the house price. 

But, can they really insist, given the affordability and conditions of HTB have not only been met already, they are accepted, in that the amount of funds being applied remain unchanged? 

Think the key thing here is mortgage AGREED, but HTB only APPLIED.  My guess is your daughter has failed HTB affordability, and is so being asked to provide a higher deposit to satisfy affordability

Slithery

rekoj said:

Best time will be in a few years when’s property has fallen by at least half dipped by a couple of percent then recovered.

FTFY.

jimbog

rekoj said:

MrsLynnie1 said:

Hi, my daughter is buying her first (new build) house on Help to buy.
5% deposit saved, mortgage agreed, and 20% HTB applied, but, apparently the HTB have insisted that before they complete my daughter MUST EITHER get the builder to donate 5% deposit too, or my daughter finds another 5% towards to purchase. 

Any idea why?  My theory is to drive equity into the house price. 

But, can they really insist, given the affordability and conditions of HTB have not only been met already, they are accepted, in that the amount of funds being applied remain unchanged? 

Best time will be in a few years when’s property has fallen by at least half

Might be interesting to this poster's other posts

eidand

rekoj said:

MrsLynnie1 said:

Hi, my daughter is buying her first (new build) house on Help to buy.
5% deposit saved, mortgage agreed, and 20% HTB applied, but, apparently the HTB have insisted that before they complete my daughter MUST EITHER get the builder to donate 5% deposit too, or my daughter finds another 5% towards to purchase. 

Any idea why?  My theory is to drive equity into the house price. 

But, can they really insist, given the affordability and conditions of HTB have not only been met already, they are accepted, in that the amount of funds being applied remain unchanged? 

Best time will be in a few years when’s property has fallen by at least half

that's a pretty daft reply