Help to Buy LTV

[Deleted User]

Ive been watching the market for a while as buying a BTL - but on hold for the moment.

So just focusing on my son - aged 21 in July 

My son has decided he wants one of the new flats near me - a one bed. We have talked for England about second hand but nope ! https://www.bellway.co.uk/new-homes/thames-gateway/st-georges-park
I think all properties are very over priced on this development - however in Nov they were queueing for three days in tents on the street  to be first to reserve homes ! 

 His apprenticeship finishes in three months then he is on £27500 basic plus 10% bonus and overtime - about £100 a month  ( key worker national communications / broadband ) so safe job and he has exceeded his expectations on training. 

He will get 40% equity loan from Gov c. £117500  
And I’ll give him about £70k 
At present ( but possibly / pressure to  drop ) price is £293,000 but hope less ( we’ll be offering less - how much less does anyone think ?  ) 
I cant work out if his loan to value for the mortgage rates 
Is it about 40% LTV or more due to help to buy ? 

Are help to buy linked mortgages more expensive than normal mortgages ? 

amnblog

It's 40% loan to value.
The range of mortgages is not the same for HTB as standard 40% LTV lending, but rates are keen.
Please note:
He needs proper advice on this as it is not as simple as finding a 40% LTV mortgage.
He needs to meet affordability for the equity loan as well as the scheme (and he sounds like he may be borderline if he has other debt or heavy service charges on the flat)
You need a Broker and one experienced with H2B - do not attempt this without one.
As to how much to offer. If you can handle being told 'no' you can offer what you want to start.

[Deleted User]

amnblog said:

It's 40% loan to value.
The range of mortgages is not the same for HTB as standard 40% LTV lending, but rates are keen.
Please note:
He needs proper advice on this as it is not as simple as finding a 40% LTV mortgage.
He needs to meet affordability for the equity loan as well as the scheme (and he sounds like he may be borderline if he has other debt or heavy service charges on the flat)
You need a Broker and one experienced with H2B - do not attempt this without one.
As to how much to offer. If you can handle being told 'no' you can offer what you want to start.

Cheers for that ! You are right - the deposit Im giving him works as I fiddled around with the HTB excel calculator adding in his car loan, taking it out ( its only £5000 and only got to make his credit history etc - can he paid off if needed ) upping the deposit, putting in estimated service charges etc so we made the 45% debt to salary ratio.
Yeah we’ll defo use a broker to get the best advice and rates for HTB ! 

Thanks