Help to Buy equity loan - is my deposit limited or can I spend as much as I want on the deposit?

whalemoney

Hi I have some questions about the help to buy loan when buying a new home.  I'm looking at a 250k home.  So I was hoping I could buy using the following breakdown;
i) £100k of my savings on the deposit (97k plus £3k H2B ISA bonus)
ii) £50k help to buy loan;
iii) 100k mortgage.

My questions;
1) Can I put 100k deposit down or is there a maximum deposit I can put down?  I ask this as I found a help2buy mortgage calculator online and it seemed to suggest I could only put a maximum of 30k deposit down.
2) When I have the money to pay back the help to buy loan (lets say this will be year 3) how is the figure I owe calculated?  If I were to borrow 50k (as that's 20%) then how do they calculate what I owe in year 3?  As I understand that the repayable amount is 20% of the home's value.  So even if I borrow 50k, the house value may have gone up, meaning the 20% I owe them will exceed the £50k.  Do they send someone to value it?
3) I understand only a selection of lenders will give you a mortgage if you are also using the help to buy loan.  My question is are the mortgage rates from these lenders as competitive as a mortgage without the help to buy loan?  

Thanks in advance

whalemoney

Also, one other question, I was looking on halifax's mortgage FAQs and it states when applying for the mortgage you have to show proof of savings, such as screenshots of statements, bank account etc.  My money is spread over numerous bank accounts.  Do they accept screenshots of multiple accounts or would I need to chuck all my money into one account?  Im just thinking maybe they wouldnt accept screenshots from each account as I suspect people would simply move money from account to account to make it look like they've got more than they actually have.

Seashell517

"The equity loan rules only state that you must provide at least a 5% cash deposit, and take out a mortgage for at least 25% of the value of the property. "
https://www.moneysavingexpert.com/mortgages/help-to-buy-equity-loans/

Seashell517

whalemoney said:

Also, one other question, I was looking on halifax's mortgage FAQs and it states when applying for the mortgage you have to show proof of savings, such as screenshots of statements, bank account etc.  My money is spread over numerous bank accounts.  Do they accept screenshots of multiple accounts or would I need to chuck all my money into one account?  Im just thinking maybe they wouldnt accept screenshots from each account as I suspect people would simply move money from account to account to make it look like they've got more than they actually have.

You'll need to show statements for a period of time, not just a screenshot of the balance, for all accounts. Even if you move it one account, you'll probably need to send statements from the other accounts to show the money has accumulated or else been there for a while as part of anti-money laundering checks.

kingstreet

Deposit is min 5%, max 55% as you need a mortgage of at least 25% on top of a 20% HTB equity loan.
Repayment is whatever % of the current property value you had at the outset. 20% loan at outset = 20% of future value to repay.
You must obtain a valuation by a RICS surveyor for HTB equity loan redemption.
Products on HTB are not as good as a non-HTB mortgage at the same LTV, but are better than those that would apply if your LTV wasn't being reduced. ie at present 5% deposit no HTB = no mortgage at present but 75% inc HTB would always be a better rate than 95%.
Lenders don't accept screen shots. Leave savings where they are and get statements/transaction lists when they are needed.

whalemoney

kingstreet said:

Deposit is min 5%, max 55% as you need a mortgage of at least 25% on top of a 20% HTB equity loan.
Repayment is whatever % of the current property value you had at the outset. 20% loan at outset = 20% of future value to repay.
You must obtain a valuation by a RICS surveyor for HTB equity loan redemption.
Products on HTB are not as good as a non-HTB mortgage at the same LTV, but are better than those that would apply if your LTV wasn't being reduced. ie at present 5% deposit no HTB = no mortgage at present but 75% inc HTB would always be a better rate than 95%.
Lenders don't accept screen shots. Leave savings where they are and get statements/transaction lists when they are needed.

Thanks.  That's answered everything.
Sorry I'm bad at maths, got a follow up question to your advice of;
"Deposit is min 5%, max 55% as you need a mortgage of at least 25% on top of a 20% HTB equity loan."
So I'd be able to do 100k deposit + 50k HTB loan + 100k mortgage then?  As my 100k deposit is below 55% of the value.

And 
"Products on HTB are not as good as a non-HTB mortgage at the same LTV,"
Is there much difference between the two i.e would I be paying a lot more back on a HTB mortgage than a normal non-HTB mortgage?

Thanks

kingstreet

The minimum mortgage on a £250k purchase is £62,500, 25%, so your proposition fits.
You need to look at rates at your loan to value with HTB then rates without HTB at that LTV and compare them. That's paid work for me, so I won't be doing it for you, sorry.

kingstreet

If Seashell's posts had been visible when I first replied, I could have saved a load of effort. Three minutes difference between them?