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How much Mortgage do I actually need to apply for?
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Liam92
Posts: 6 Forumite
Hi Guys,
Just looking to cross-check some information with the community as I am a little confused. Details below.
New Build Property value of £247,995. We have reserved and paid an initial Reservation Fee and have been advised we need a Mortgage Offer in place before Exchange of Contracts. A bit of confusion about how much Mortgage we actually need. We will be using the Government Help to Buy Equity Loan (20% - £49,599)
Reservation Fee & Developer Deposit is £7,000. We also have 2 x Help to Buy ISA's with circa £8,300 (£16,690 in total, before 25% Government Bonus) in each.
So, to my maths:
£7,000 + £16,690 (2 x H2B ISA) = £23,690
H2B Equity Loan @ £49,599
Help 2 Buy ISA 25% Bonus = £4,172.50
Outstanding Balance (and therefore Mortgage Required) is £170,533.50
However, we have been advised that we must apply for a Mortgage not including the H2B ISA 25% Bonus so require circa £174,700. This, to my mind makes no sense for two reasons; I have to apply for a Mortgage I quite literally do not need, which reduces my possible lenders and all that comes with it. Secondly it pushes us to, and perhaps beyond, our affordability which concerns me considerably (and, in my naive opinion, completely avoidable).
Just looking for a bit of clarity/second opinion. I am content to apply for the £174k if that is what the process advises must be done, but I am a little reticent about it so say the least; it is a Mortgage Value that, simply, we don't need.
Just looking to cross-check some information with the community as I am a little confused. Details below.
New Build Property value of £247,995. We have reserved and paid an initial Reservation Fee and have been advised we need a Mortgage Offer in place before Exchange of Contracts. A bit of confusion about how much Mortgage we actually need. We will be using the Government Help to Buy Equity Loan (20% - £49,599)
Reservation Fee & Developer Deposit is £7,000. We also have 2 x Help to Buy ISA's with circa £8,300 (£16,690 in total, before 25% Government Bonus) in each.
So, to my maths:
£7,000 + £16,690 (2 x H2B ISA) = £23,690
H2B Equity Loan @ £49,599
Help 2 Buy ISA 25% Bonus = £4,172.50
Outstanding Balance (and therefore Mortgage Required) is £170,533.50
However, we have been advised that we must apply for a Mortgage not including the H2B ISA 25% Bonus so require circa £174,700. This, to my mind makes no sense for two reasons; I have to apply for a Mortgage I quite literally do not need, which reduces my possible lenders and all that comes with it. Secondly it pushes us to, and perhaps beyond, our affordability which concerns me considerably (and, in my naive opinion, completely avoidable).
Just looking for a bit of clarity/second opinion. I am content to apply for the £174k if that is what the process advises must be done, but I am a little reticent about it so say the least; it is a Mortgage Value that, simply, we don't need.
0
Comments
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The 25%LISA bonus is added on each time you put money into the LISA account
However your solicitors have to apply for the bonus from the HTB ISA once you have completed I THINK !
Hence applying for the £175,000 mortgage.
Once you have the £4,000+ bonus you can always overpay the mortgage by £4,000.0 -
The 25%LISA bonus is added on each time you put money into the LISA account
However your solicitors have to apply for the bonus from the HTB ISA once you have completed I THINK !
Hence applying for the £175,000 mortgage.
Once you have the £4,000+ bonus you can always overpay the mortgage by £4,000.0
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