Advice needed now Help to Buy has ended and my development wont complete by the deadline
adarbin
Forumite 10 Posts
Hi All,
I got some advice a while back about a loan that wouldn't cause problems for the mortgage. I need some more advice as out of the blue in May my parents offered to take equity out of their house to give me a deposit on a new build near where I currently live. I got everything ready to complete by the end of the month but 10 days after HtB closed to amendments and new applications, I got an email from the estate agent saying that completion has been pushed back again and now wont happen till Q1 2023 having started at Q3 2022. HtB requires developments to be build complete by the end of the year so can no longer purchase via that.
The flat I was purchasing is £380k, my mortgage took so long to approve the reversion rate went up meaning I had to find an extra £8K deposit which I have found half of and am able to add £1,000 per month. I had £152K from HtB with £98k deposit I had an approved mortgage of £130k. As HtB affordability is more restrictive I have rerun the numbers based on the following.
I have 2 jobs, F/T perm in the civil service (1 year service) earning £27,958.32, P/T with Waitrose (4 years service) earning £9,000. this year my total bonuses from these jobs is £1,724. I have done overtime in the past but as I currently work 6 days a week I cant do more at the moment. I am 38, single with no dependants, but have one default from 2020 meaning that my mortgage advisor couldn't get a mortgage from the high st but got one from the mortgage lender.
Using their affordability calculator I get a maximum loan of £148,103 so with deposit we are looking at £242k currently meaning I have a short fall off £130k.
The only option I could think was to offer friends and family the chance to buy equity in the property with a monthly payment equivalent to 4% interest but don't know what the options or issues with doing this are or if there is a organisation that does this themselves.
With such a large shortfall it would be easier to give up but this is the cheapest place for me to live meaning I can save more and pay back the mortgage or buy back equity quicker. Not to bore you all with too many details but the development is finished to a decent spec with heat pumps etc and I managed to get a unit that is west facing, off the ground floor in the corner so there is only about 1/8 external wall. It is a 15 minute cycle to my main office (Monday - Thursday), a easy tube ride to the westminster office on a Friday morning before heading to Kensington for my second job and is only a 5 minute walk from the station meaning I can load up on the unsold food we get for free at the end of the day. Also having gotten so close I have already spent the money on the searches as so on.
The only other place I have found is looking for O.I.E.O £250k soi still over budget. Its really nice and probably bigger but its a conversion from 2007 with energy rating is C (72), flat roof and still has GCH which for me any saving on unit costs are lost by the low usage, service charge and maintenance contract I would need. Its a 40 minute cycle to the main office and also one zone further out on the tube adding 20p-70p per journey which adds up very fast when I have to go into zone 1 at least once a week.
All the other options are shared ownership with quite high rents that go up every year giving me the worst of both worlds. have short leases or are to far from a station / my main office to be practical.
I'm sure im asking for the impossible but without asking I don't know and as where i live is due to be demolish in the next 18 month with my tenancy meaning i only get a months notice with no need to rehouse i want to know i have tried everything before giving up.
Thanks in advance for any help you can give.
Alan
I got some advice a while back about a loan that wouldn't cause problems for the mortgage. I need some more advice as out of the blue in May my parents offered to take equity out of their house to give me a deposit on a new build near where I currently live. I got everything ready to complete by the end of the month but 10 days after HtB closed to amendments and new applications, I got an email from the estate agent saying that completion has been pushed back again and now wont happen till Q1 2023 having started at Q3 2022. HtB requires developments to be build complete by the end of the year so can no longer purchase via that.
The flat I was purchasing is £380k, my mortgage took so long to approve the reversion rate went up meaning I had to find an extra £8K deposit which I have found half of and am able to add £1,000 per month. I had £152K from HtB with £98k deposit I had an approved mortgage of £130k. As HtB affordability is more restrictive I have rerun the numbers based on the following.
I have 2 jobs, F/T perm in the civil service (1 year service) earning £27,958.32, P/T with Waitrose (4 years service) earning £9,000. this year my total bonuses from these jobs is £1,724. I have done overtime in the past but as I currently work 6 days a week I cant do more at the moment. I am 38, single with no dependants, but have one default from 2020 meaning that my mortgage advisor couldn't get a mortgage from the high st but got one from the mortgage lender.
Using their affordability calculator I get a maximum loan of £148,103 so with deposit we are looking at £242k currently meaning I have a short fall off £130k.
The only option I could think was to offer friends and family the chance to buy equity in the property with a monthly payment equivalent to 4% interest but don't know what the options or issues with doing this are or if there is a organisation that does this themselves.
With such a large shortfall it would be easier to give up but this is the cheapest place for me to live meaning I can save more and pay back the mortgage or buy back equity quicker. Not to bore you all with too many details but the development is finished to a decent spec with heat pumps etc and I managed to get a unit that is west facing, off the ground floor in the corner so there is only about 1/8 external wall. It is a 15 minute cycle to my main office (Monday - Thursday), a easy tube ride to the westminster office on a Friday morning before heading to Kensington for my second job and is only a 5 minute walk from the station meaning I can load up on the unsold food we get for free at the end of the day. Also having gotten so close I have already spent the money on the searches as so on.
The only other place I have found is looking for O.I.E.O £250k soi still over budget. Its really nice and probably bigger but its a conversion from 2007 with energy rating is C (72), flat roof and still has GCH which for me any saving on unit costs are lost by the low usage, service charge and maintenance contract I would need. Its a 40 minute cycle to the main office and also one zone further out on the tube adding 20p-70p per journey which adds up very fast when I have to go into zone 1 at least once a week.
All the other options are shared ownership with quite high rents that go up every year giving me the worst of both worlds. have short leases or are to far from a station / my main office to be practical.
I'm sure im asking for the impossible but without asking I don't know and as where i live is due to be demolish in the next 18 month with my tenancy meaning i only get a months notice with no need to rehouse i want to know i have tried everything before giving up.
Thanks in advance for any help you can give.
Alan
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You can't have people loan you money because the mortgage company will not allow it.
unfortunately my parents are well into their retirement but I’ll look into it. I forgot when I looked in the past you can get mortgages with multiple guarantors.