Help to Buy Equity Loan

Rachel1954

Im looking for some help / Clarity on the Help to buy scheme as I have come across a grey area.
I have applied for the help to buy equity loan and currently waiting for Homes for England to give me the authority to proceed through help to buy. I received a phone call yesterday form a 'help to buy' agent in my area to ask me why my husband has not signed the application as I ticked the box 'married'. I then informed the agent that I am actually going through a divorce therefore my husband will not be signing the application form as he is not buying the house with me, he also can't sign the form as he is a home owner. I am not, I am not on the mortgage in my martial home or the deeds.  I also told the lady that on the help to buy online application form the boxes available are 'Married or Single' I explained I didn't want to tick the 'single' box as that was false information and could be classed as fraudulent as its a government form for a loan.  I offered feedback that the forms should have Married / Single / Separated / Divorced or Widowed and that sometimes it's not that simple.  The agent informed me that my application had been flagged up because of the 'married' box, she needed to speak to homes for England to see if they will approve this. She went onto say that the rules have just changed as people are trying to cheat the system, get the equity loan whilst owning a house.  I assured her this wasn't the case for me and I have proof of my application to the court from my solicitors to send if they needed.  She told me someone will be in touch soon.

This evening I have emailed homes for England explaining my situation and offering proof of my divorce application and have to leave my martial home hence why I have found myself a new place to live.

I feel this is a huge grey area within the equity loan system and not one that is fair, which is causing people like myself to be penalised and to some degree discriminated against. Especially when I meet all the criteria.  I told the help to buy agent if I had ticked the 'SINGLE' box then no one would know any different and I would have had the loan approved..to which she didn't reply! I was doing the right thing and I am eligible for this equity loan.  Has anyone else been faced with this problem? if so can you offer some help. My conveying solicitor told me she cant help.  I asked the help to buy agent this question, 'I can't be the first person to in the UK to have this problem' her response was I have never had this before!

I don't want to loose the apartment I have found due to the system not being fair or having to wait for my divorce to have gone through as this could also take some time.

Thanks in advance.

Slithery

Rachel1954 said:

I am not on the mortgage in my martial home or the deeds.

Even if you aren't on the deeds or party to the mortgage it is still a marital asset which you may have a beneficial interest in. You may need to get your financial settlement sorted before you can continue.

Keswick1uk

I think if you are married the scheme requires a joint application? Have to read the small print on separations.

[Deleted User]

Rachel1954 said:

Im looking for some help / Clarity on the Help to buy scheme as I have come across a grey area.
I have applied for the help to buy equity loan and currently waiting for Homes for England to give me the authority to proceed through help to buy. I received a phone call yesterday form a 'help to buy' agent in my area to ask me why my husband has not signed the application as I ticked the box 'married'. I then informed the agent that I am actually going through a divorce therefore my husband will not be signing the application form as he is not buying the house with me, he also can't sign the form as he is a home owner. I am not, I am not on the mortgage in my martial home or the deeds.  I also told the lady that on the help to buy online application form the boxes available are 'Married or Single' I explained I didn't want to tick the 'single' box as that was false information and could be classed as fraudulent as its a government form for a loan.  I offered feedback that the forms should have Married / Single / Separated / Divorced or Widowed and that sometimes it's not that simple.  The agent informed me that my application had been flagged up because of the 'married' box, she needed to speak to homes for England to see if they will approve this. She went onto say that the rules have just changed as people are trying to cheat the system, get the equity loan whilst owning a house.  I assured her this wasn't the case for me and I have proof of my application to the court from my solicitors to send if they needed.  She told me someone will be in touch soon.

This evening I have emailed homes for England explaining my situation and offering proof of my divorce application and have to leave my martial home hence why I have found myself a new place to live.

I feel this is a huge grey area within the equity loan system and not one that is fair, which is causing people like myself to be penalised and to some degree discriminated against. Especially when I meet all the criteria.  I told the help to buy agent if I had ticked the 'SINGLE' box then no one would know any different and I would have had the loan approved..to which she didn't reply! I was doing the right thing and I am eligible for this equity loan.  Has anyone else been faced with this problem? if so can you offer some help. My conveying solicitor told me she cant help.  I asked the help to buy agent this question, 'I can't be the first person to in the UK to have this problem' her response was I have never had this before!

I don't want to loose the apartment I have found due to the system not being fair or having to wait for my divorce to have gone through as this could also take some time.

Thanks in advance.

I'm not sure this is legally a grey area.  You are married, appear to have only fairly recently applied for a divorce and married couples must jointly apply for HTB EL.  In fact if you're still married when you complete this purchase of this property with or without HTB EL then the higher rate of SDLT could well apply unless you are either legally separated (by court order or deed of separation) or are, in fact, separated in circumstances in which the separation is likely to be permanent [Para 9(3) and section 1011 Income Tax Act 2007].  

kingstreet

Area HTB Agents administer the scheme. For example, they are Radian in the South, BPHA in the Midlands & London and Plus Dane in the North. Homes England is the funding body. You should be contacting your Area Agent, not HE direct. Do you have a mortgage broker working with you as I would have expected them to have sorted this with you prior to submitting the PIF/Res?

b4by_v

Rachel1954 said:

Im looking for some help / Clarity on the Help to buy scheme as I have come across a grey area.
I have applied for the help to buy equity loan and currently waiting for Homes for England to give me the authority to proceed through help to buy. I received a phone call yesterday form a 'help to buy' agent in my area to ask me why my husband has not signed the application as I ticked the box 'married'. I then informed the agent that I am actually going through a divorce therefore my husband will not be signing the application form as he is not buying the house with me, he also can't sign the form as he is a home owner. I am not, I am not on the mortgage in my martial home or the deeds.  I also told the lady that on the help to buy online application form the boxes available are 'Married or Single' I explained I didn't want to tick the 'single' box as that was false information and could be classed as fraudulent as its a government form for a loan.  I offered feedback that the forms should have Married / Single / Separated / Divorced or Widowed and that sometimes it's not that simple.  The agent informed me that my application had been flagged up because of the 'married' box, she needed to speak to homes for England to see if they will approve this. She went onto say that the rules have just changed as people are trying to cheat the system, get the equity loan whilst owning a house.  I assured her this wasn't the case for me and I have proof of my application to the court from my solicitors to send if they needed.  She told me someone will be in touch soon.

This evening I have emailed homes for England explaining my situation and offering proof of my divorce application and have to leave my martial home hence why I have found myself a new place to live.

I feel this is a huge grey area within the equity loan system and not one that is fair, which is causing people like myself to be penalised and to some degree discriminated against. Especially when I meet all the criteria.  I told the help to buy agent if I had ticked the 'SINGLE' box then no one would know any different and I would have had the loan approved..to which she didn't reply! I was doing the right thing and I am eligible for this equity loan.  Has anyone else been faced with this problem? if so can you offer some help. My conveying solicitor told me she cant help.  I asked the help to buy agent this question, 'I can't be the first person to in the UK to have this problem' her response was I have never had this before!

I don't want to loose the apartment I have found due to the system not being fair or having to wait for my divorce to have gone through as this could also take some time.

Thanks in advance.

Hello Rachel, did you get anymore clarity on this at all? I have hit the same problem and I think they will find this issue more and more and definitely is a grey area! I have just reserved a flat and started the application form, while instructing solicitor and mortgage broker. I am down as Mrs on all the reservations forms but informed the agency that I am separated and they have let me get this far which is rather annoying. We haven’t started divorce proceedings yet as it’s been 4 months since we split but my ex husband has no property (he would be a first time buyer as well) and we have no joint financial assets and I was even going to get him to jointly sign a form with me to say he will not have any future involvement in my financial assets etc. Which he would happily do.
The way I see it, divorce or no divorce we are applying as a single person if we are separated and why does it matter, government still get their 40% when you sell so it’s not as if anyone is losing out! Anyway, If you managed to find a way around this please do to let me know. Help to buy is the only way I can afford to live in my home area and being newly separated I feel discriminated against having to move away from home just to get my foot on the ladder.