Help!! Help to Buy Equity Loan

MD2096

Hi All, 

my partner and I are purchasing a new build home using the Help to Buy equity loan. 

Long story short... we have applied for the mortgage through our broker however we have only found out that he has not applied for the loan itself. Our developer contacted us to tell us she was concerned that it hasn’t been applied for yet.
We assumed we would apply for the mortgage funding and then the HTB loan or that it would all be done in one? 

I am worried as I know it is easy to be rejected for the loan. Is this a normal way of getting a HTB mortgage?

Thanks,

muhammad_minar

Hi. The better way ( there is no such thing as the right way) is to apply for equity loan through help to buy first. In this application you will state your desired equity loan amount, deposit amount and mortgage amount. Help to Buy will give you a ATP which states these amounts. This ATP is then attached at a full mortgage application. Most lenders need to see ATP at mortgage application so it makes sense to get equity loan approval first. You need to speak to your broker urgently - most estate agents with new builds expect the equity loan sorted first - hence their confusion I guess. 

watch3r

My experience: 
I was going through Barclays , direct .
they will not talk with you about you HTB mortgage without ATP ( that’s document stating HTB will offer you the equity loan ).
you can apply yourself , it’s easy only document they need is you reservation form from the developer .
you don’t need a lender details but you need solicitor detail . Once you get ATP your developer and solicitor will get it as well .
depending where you live it might take up to 14 days ( business days submitting day doesn’t count ) to issue ATP and without it no lender will start mortgage application for HTB. 

MD2096

muhammad_minar said:

Hi. The better way ( there is no such thing as the right way) is to apply for equity loan through help to buy first. In this application you will state your desired equity loan amount, deposit amount and mortgage amount. Help to Buy will give you a ATP which states these amounts. This ATP is then attached at a full mortgage application. Most lenders need to see ATP at mortgage application so it makes sense to get equity loan approval first. You need to speak to your broker urgently - most estate agents with new builds expect the equity loan sorted first - hence their confusion I guess. 

Thanks so much for your Informative reply. 

Yes I feel a bit silly actually for not realising we needed to apply for the loan but as a FTB I hoped our broker would have told us! 

We applied for the loan yesterday so fingers crossed it comes through soon so we can get the mortgage rolling. 

Thanks, 
M

csgohan4

the broker was not via the developer / EA were they?

MD2096

csgohan4 said:

the broker was not via the developer / EA were they?

No they weren’t, they were our own broker. We used him as a lot of people we knew had a positive experience with him! 

Thanks, 
M

watch3r

@MD2096 have you applied for ATP ?? 

blogger201719

MD2096 said:

muhammad_minar said:

Hi. The better way ( there is no such thing as the right way) is to apply for equity loan through help to buy first. In this application you will state your desired equity loan amount, deposit amount and mortgage amount. Help to Buy will give you a ATP which states these amounts. This ATP is then attached at a full mortgage application. Most lenders need to see ATP at mortgage application so it makes sense to get equity loan approval first. You need to speak to your broker urgently - most estate agents with new builds expect the equity loan sorted first - hence their confusion I guess. 

Thanks so much for your Informative reply. 

Yes I feel a bit silly actually for not realising we needed to apply for the loan but as a FTB I hoped our broker would have told us! 

We applied for the loan yesterday so fingers crossed it comes through soon so we can get the mortgage rolling. 

Thanks, 
M

Any luck with the HTB? Did you get the ATP?

Rony

I am quite surprised the broker has not mentioned HTB to you at all during your mortgage search.
With mine, all details were fleshed out at the initial screening process.