Help to buy deposit help

Mrsjy

Hi, 

Hoping someone can help me make sense of this. So we have bad credit...last year we tried getting a DIP with bluestone for a new build using help to buy assuming we would have to pay 5% deposit then 20% from help to buy. They come back with a dip but they wanted 10% deposit and 20% help to buy. Now at the time we thought it was just because our credit was bad so they wanted a minimum of 10% deposit from us with the help to buy. Fast forward to now and I’ve done quite a bit of research in how mortgages work and now seem to understand it better. Am I right in thinking that the reason we needed 10% deposit was actually because the product/level we qualified for with our criteria was a maximum of 70% ltv? We are looking at mortgages again in the near future and our credit has improved from before, looking at the products that were available before lockdown with for example precise/Kensington/Vida Homeloans and Aldermore we fit the criteria for a lot of their products and it says 75% ltv. Now does that mean we will only need to put down 5% deposit alongside the 20% help to buy?

Sorry to babble on 🙈
Thanks in advance

[Deleted User]

yeah your understanding is right on the ltv bit.   Not a lot of lenders in that area are currently lending though and the ones that are have tightened up on allowable adverse quite a lot.   Things will hopefully go back to normal soon but it might be a while before its the same as it was 3 months ago

Mrsjy

Deleted_User said:

yeah your understanding is right on the ltv bit.   Not a lot of lenders in that area are currently lending though and the ones that are have tightened up on allowable adverse quite a lot.   Things will hopefully go back to normal soon but it might be a while before its the same as it was 3 months ago

Great thanks. All defaults are going to be over 2 years old at the start of next year so we are happy to wait until then anyway. The plots we want arnt going to be released until around march time so I’m hoping things should be back to ‘normal’ by then. I was just confused with the deposit, paying 5% deposit will be a massive help because then the other 5% can go towards furniture Thanks again

MovingForwards

Have a look at Bluestone's lending criteria, under the advisory section, they have recently changed how much of a deposit they want.