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  • FIRST POST
    • MSE Helen Saxon
    • By MSE Helen Saxon 16th May 13, 5:57 PM
    • 75Posts
    • 44Thanks
    MSE Helen Saxon
    Government mortgage schemes
    • #1
    • 16th May 13, 5:57 PM
    Government mortgage schemes 16th May 13 at 5:57 PM
    Hi!

    This is the discussion thread for the



    Click reply below to discuss. If you havenít already, join the forum to reply. If you arenít sure how it all works, read our New to Forum? Intro Guide.


    Thanks folks,
Page 3
    • Thrugelmir
    • By Thrugelmir 7th Aug 16, 9:53 PM
    • 58,504 Posts
    • 51,870 Thanks
    Thrugelmir
    Gain in the increase in the value of the property on the loan element is owed to the Government. Negates the benefit. That along with a slightly higher interest rate. As lenders pay to participate in the scheme.
    Financial disasters happen when the last person who can remember what went wrong last time has left the building.
    • Philip1980
    • By Philip1980 9th Aug 16, 9:35 PM
    • 1 Posts
    • 0 Thanks
    Philip1980
    I bought my property in November 2014 with a 20% equity loan through Help to Buy. In order to potentially take advantage of the low interest rates at the moment, when the 2nd year of my 3 year fix is over, in November 2016, I may be looking to remortgage if the ERP is less than the saving I would make on the remortgage,

    The question I have is relating to the repayment of the Help to Buy Loan. If I am in a position to remortgage to the full amount (as I'm overpaying on my mortgage) e.g. remaining mortgage value + 20% ex-Help to Buy, how would I pay back the 20% to the Help to Buy agent?

    Indicative figures are outstanding mortgage of £116,000, 20% Help to Buy loan of £34,000, so if I could remortgage at the £150,000, how would I pay back the £34,000 to the Help to Buy agent as I physically wouldn't be paid the £34,000?
    • kingstreet
    • By kingstreet 10th Aug 16, 7:38 AM
    • 33,393 Posts
    • 18,076 Thanks
    kingstreet
    Like any other remortgage.

    The funds would be ordered by the solicitor representing you and paid out to the old lender and post-sales HTB Agent and the two charges would be removed and replaced by that of the new lender.

    Current post-sales HTB Agent website;-

    http://www.myfirsthome.org.uk/
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • NancyBaby
    • By NancyBaby 24th Aug 16, 1:24 PM
    • 1 Posts
    • 0 Thanks
    NancyBaby
    Please can someone help me? My son and his partner bought a place in the spring with 20% Equity Loan. Girlfriend left 4 weeks later. Trying to change the loan to his brother who is taking over but TARGET tell us its not possible to change over any more. What can he do?
    • Samikins77
    • By Samikins77 20th Dec 16, 9:30 PM
    • 2 Posts
    • 0 Thanks
    Samikins77
    Advice on which scheme
    Hi,
    I'm trying to weigh up whether to go for shared ownership or help to buy. I live in London, and I was wondering if anyone had had any good experiences with any advisors that can help you weigh up all the costs, etc for each option so I can make an educated decision. For example, what happens with stamp duty in each case. Likely fees in each case, etc.
    Thanks,


    (also, I don't really know how to submit a new post, so this might come up as a reply to someone?! )
    • Mr Moomin
    • By Mr Moomin 10th Feb 17, 4:30 PM
    • 1 Posts
    • 0 Thanks
    Mr Moomin
    Changing names on a HtB loan deed
    Hi - friend of mine is Separating and needs to remove ex of the Help to Buy but is having difficulties with this. They are saying that this can only be done if it goes into one name - ie on their own but they want this to be with another person.
    There seems to be a huge gap in process here and no one seems to if this can be completed or not?????

    Any help pls?

    Thanks
    • kingstreet
    • By kingstreet 10th Feb 17, 7:04 PM
    • 33,393 Posts
    • 18,076 Thanks
    kingstreet
    No idea.

    If Target say it can be done, it can. If they say it can't, it can't. They run the show for HMG.

    Presumably there's a one-on, one-off transfer of equity and same happening with the mortgage?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • woolgar.c
    • By woolgar.c 25th Jun 17, 10:30 PM
    • 42 Posts
    • 5 Thanks
    woolgar.c
    HTB repayment query
    Hi,

    Looking a bit of advice - we bought a property in 2014 for 215k, with 20% of that being the HTB equity loan. As we would start paying fees on it soon we're working out our options & we presume it is better to get rid of the equity loan as soon as we can.

    Approx current value of home 259k
    Approx savings we have 28k

    I see our options as -
    1) pay back 10% (25900 + surveyor, solicitor & HTB fees)
    2) remortgage for the 20% & put the 28k into the mortgage (would we pay this in then remortgage or pay it as part of the remortgage?)

    Concerns -
    1) the remaining 10% owed will continue to increase & we would need to re-pay fees again when we can do this
    2) unsure how much we can borrow at present, fixed interest rate until Nov 2018 so unsure if we should try to remortgage early

    For more detailed advice should we just look for a financial adviser? do we need to check they meet any specific criteria?

    Thanks
    • SuboJvR
    • By SuboJvR 25th Jun 17, 11:18 PM
    • 455 Posts
    • 339 Thanks
    SuboJvR
    How much is left on your mortgage?

    Do you have any limitations on how much you can overpay?

    I must admit I'm not sure of the best way to do things but I was going to aim to try and pay more of the mortgage off for our HTB to hopefully remortgage at the five year mark to cover the HTB loan then... I think..
    • woolgar.c
    • By woolgar.c 27th Jun 17, 1:28 PM
    • 42 Posts
    • 5 Thanks
    woolgar.c
    Good questions.
    We can overpay by 10% each year & have approx. 153000 left to pay.
    We're thinking we may overpay this year & next, & then apply for additional borrowing from mortgage company to pay off the equity loan (before house prices go up further & it gets more expensive to pay back)- seems Halifax don't enable a remortgage to cover everything in one product.
    • primrose26
    • By primrose26 28th Jun 17, 10:06 AM
    • 1 Posts
    • 0 Thanks
    primrose26
    Shared ownership contract
    I wonder if anyone might be able to help.
    My daughter bought a shared ownership house a few years ago - she bought 50% and rents 50%. The original contract states that she is only allowed to buy 80% in total.
    She is about to finish paying for the 50% as she has been gifted some money.
    Has anyone managed to challenge the original contract and been granted the ability to buy 100% of the property?

    The reason she would like to be able to do this is that she has 3 children of her own and has just adopted another child - this was not really a planned adoption but in the best interests of the child. Their house is now too small for them and they would like to extend - buying a new house is ut of the question financially (cannot borrow on salary). The housing association would
    a. not permit this
    b. still own 20% of the house and therefore 20% of any extension, so better to own 100%.

    Any help on this would be very much appreciated
    • Daltonxlouise
    • By Daltonxlouise 1st Aug 17, 11:10 AM
    • 6 Posts
    • 0 Thanks
    Daltonxlouise
    Need any help possible please

    Basically me and my partner went to see a new build apartment yesterday. We assumed it was rent but it turns out it's help to buy. The builder provides the 5% deposit and the government pays 20% deposit which is interest free for 5 years we pay £350 for 6 months while the mortgage is going through, once the mortgage is done the property belongs to us after 6 months and our mortgage payments stay at £350 a month. After 5 years Interest free the equity to the property should have built and they advise us to re mortgage to be able to pay off the 25,000 before the interest starts to add. Has anybody else heard of this we have so many mixed reviews it's making us doubt the whole thing
    • amograd912
    • By amograd912 5th Dec 17, 3:24 PM
    • 1 Posts
    • 0 Thanks
    amograd912
    Shared Ownership - am I entited?
    Hi.


    Just wondering if anyone can help me with the rules and regs on shared ownership as I am getting a lot of mixed messages and HM Help to buy are not being very helpful.


    In 2013 I inherited 1/5 of a house in Ireland, I have been told by banks that I am not entitled to the first time buyer scheme as I am a homeowner whether I own 1/5 or a whole house.


    Where do I stand with the shared ownership? am I still entitled to this? I consider myself a first time buyer as I have not lived in the house abroad and I didn't buy it and never intend to live in it.


    I have already looked in to selling my share however, again I was informed by the banks that whether I sold my share or not, I would still not be entitled to any scheme. My boyfriend is a first time buyer. So this puts us in a little bit of a predicament.


    Any help or advise is welcome.


    Thanks.
    • smellygypo
    • By smellygypo 14th Dec 17, 4:51 PM
    • 3 Posts
    • 0 Thanks
    smellygypo
    Help To Buy: Equity Loan for cash buyers
    Hi all,

    My partner and I are looking to move into a larger new build house in Bristol next year. I (alone) own our current property outright. If we are able to cover 80% of the new property through selling our current home and family borrowing, will we still be eligible for a Help To Buy loan for the remaining 20% without taking out a commerical mortgage? Would it be better to take the loan out under my name, my partners or jointly?

    Also, is it possible to pay back the loan within the 5 year period? Will we pay the orginal loan value or a higher value realtive to the house value rise over 5 years? What happens after the 5th year and how do the ineterst rates compare to commercial lenders? Is a Help to Buy loan our best bet or are there more cost effective ways for us to move up the housing ladder?

    Thanks and sorry for all the questions, this is all a bit of a minefield!
    • kingstreet
    • By kingstreet 14th Dec 17, 4:58 PM
    • 33,393 Posts
    • 18,076 Thanks
    kingstreet
    No.

    Minimum mortgage is 25% of purchase price.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • smellygypo
    • By smellygypo 14th Dec 17, 5:28 PM
    • 3 Posts
    • 0 Thanks
    smellygypo
    No.

    Minimum mortgage is 25% of purchase price.
    Originally posted by kingstreet
    In that case, would I be able to take out the minimum 25% mortgage to qualify for HTB and pay it back instantly using the sale proceeds of my current property?
    • kingstreet
    • By kingstreet 14th Dec 17, 8:25 PM
    • 33,393 Posts
    • 18,076 Thanks
    kingstreet
    In that case, would I be able to take out the minimum 25% mortgage to qualify for HTB and pay it back instantly using the sale proceeds of my current property?
    Originally posted by smellygypo
    No. The HTB loan cannot persist once the mortgage is repaid.

    The second charge must be repaid before the first.

    Have you read the guide and spent any time on the post-sales HTB Agent's site?

    https://www.helptobuy.gov.uk/equity-loan/equity-loans/

    http://www.myfirsthome.org.uk/
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Vik1510
    • By Vik1510 23rd May 18, 10:48 AM
    • 2 Posts
    • 0 Thanks
    Vik1510
    Help.. I'm stuck with my HTB
    Hi all, looking for some advice. I currently own a HTB property in Scotland, this was purchased in Jan 2016. I then met my now partner and we are looking to move in together... sounds simple enough. Unfortunately he also bought a HTB in Sept 2016 just before we met.


    Any advice? We would love to be able to rent his out but there seems to be so much tape in even attempting to get them to let us rent which they could then just say no. Also adding on to the mortgage seems to be an absolutely mine field as well..... what's the best option here?
    • kingstreet
    • By kingstreet 23rd May 18, 10:50 AM
    • 33,393 Posts
    • 18,076 Thanks
    kingstreet
    You can't normally let a property while it has an HTB loan secured on it.

    You can only "add on to the mortgage" to repay some or all of the equity loan.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • Vik1510
    • By Vik1510 23rd May 18, 12:26 PM
    • 2 Posts
    • 0 Thanks
    Vik1510
    Ok so best option here is to add it onto the mortgage? This is possible just seems like a lot of hoops to jump through to get the Govt. to approve this as well. They certainly don't want to make it easy for you to give them the money back!


    Either option currently is looking like a couple thousand to get out of the loan.
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