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  • FIRST POST
    • Grezz24
    • By Grezz24 14th Mar 18, 4:13 PM
    • 46Posts
    • 16Thanks
    Grezz24
    New Mortgage - Help To Buy Help
    • #1
    • 14th Mar 18, 4:13 PM
    New Mortgage - Help To Buy Help 14th Mar 18 at 4:13 PM
    Hi All,

    I am after some advise around the next steps for me and my wife's potential mortgage application.

    some history - looking to buy a 3 or 4 bed house - new build to take advantage of the 20% Govt help to buy equity loan.

    So presuming that the house is 220,000 (the ones we have seen are 180,000 - 250,000):
    Deposit (5%) - 11,000 (currently we have 4,000 but are saving 1000 a month so expect to be in a position to buy by the end of the year)
    Govt (20%) - 44,000
    Mortgage (75%) - 165,000

    We have an agreement in principle for just under 200,000. so that would cover the 165k mortgage element (pending full credit check etc).

    My questions are:

    1. We are looking at a new build, when should we approach and express our interest, im presuming we must at least have our 5% deposit before we can be in a position to do anything other than look / be taken serious by the building companies etc.
    2. If we were to buy off plan, would we be able to put our names down for a house before having the full deposit, as we have the time to save while its being built (im guessing this is a no)
    3. I plan on speaking with a mortgage adviser to go through everything, when would be best to start this process, when we have our full 5% deposit?

    Thanks All.

    G
Page 1
    • PapaShango84
    • By PapaShango84 14th Mar 18, 5:20 PM
    • 5 Posts
    • 0 Thanks
    PapaShango84
    • #2
    • 14th Mar 18, 5:20 PM
    • #2
    • 14th Mar 18, 5:20 PM
    Depends on the timings of the new build I think; we put down on a new build in December when we had perhaps 3% deposit saved, knowing that we would have at least 5% (and cover for fees) by the time we would have to apply (which we are doing next week). This is for a house available in July.
    • allyant
    • By allyant 14th Mar 18, 6:40 PM
    • 11 Posts
    • 1 Thanks
    allyant
    • #3
    • 14th Mar 18, 6:40 PM
    • #3
    • 14th Mar 18, 6:40 PM
    Recently went through HTB with new builder. The builder wanted the contract signed within 30 days of reserving the property (500 reservation fee although variable depending on the builder). This is flexible it ended up taken us 2 months due to issues with mortgage provider.

    They also want the deposit to be held by our lawyers when the contract is signed too.
    • crystalpinks
    • By crystalpinks 14th Mar 18, 10:26 PM
    • 40 Posts
    • 20 Thanks
    crystalpinks
    • #4
    • 14th Mar 18, 10:26 PM
    • #4
    • 14th Mar 18, 10:26 PM
    Usually about 250-500 to reserve then you'd need 5% of the purchase price on exchange of contracts (a month or two after reserving.
    • Grezz24
    • By Grezz24 15th Mar 18, 12:34 PM
    • 46 Posts
    • 16 Thanks
    Grezz24
    • #5
    • 15th Mar 18, 12:34 PM
    • #5
    • 15th Mar 18, 12:34 PM
    Thanks all,

    so its probably best we start looking at new houses shortly, to get a feel for what each building company operates like?
    • crystalpinks
    • By crystalpinks 15th Mar 18, 5:23 PM
    • 40 Posts
    • 20 Thanks
    crystalpinks
    • #6
    • 15th Mar 18, 5:23 PM
    • #6
    • 15th Mar 18, 5:23 PM
    Yeah but with all the big builders you're going to need have the 11k ready 28 days after reserving (give or take a couple of weeks) so if you only have 4K now it may be a bit premature ?
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