Mortgages, (new guarantee in particular)

[Gymbob]

They may be a mortgage advisor on here lol or some of you might be well informed about it

So i'd just like to ask/confirm as I cant find this information anywhere and the people I talk to from different branches are useless and don't seem to have a clue about anything.

Is the guarantee only accepted on people up to a deposit of 20%... for example if you put a 5% deposit down, will the government loan the 15% left? then 10% is both... etc. But if you put a 20% deposit down do they not give you anything?

Or, can you put a 20% deposit down and still borrow a 15% loan?

The reason I ask is that because my salary isn't high enough I cant borrow more than 71k due to also being a student. But I have saved up a 20% deposit on the (113k house) so that's why ideally I need the scheme to allow me to borrow over that deposit. But no where seems to know....

[hooky]

On a NEW build the government will give an interest free LOAN of UP TO 20% value of the house and you have to find the 5%, if you find 10% then they may loan you 15% etc. So its always a combined max of 25%

On an older house the government wont loan you anything, but will act as guarantor for 15% of the house value. and you pay 5% deposit as normal.

So basically the phase 2 guarantee is just a promise to the lender that if it all goes pete tong, then they will cover any losses up to 15% of the original value of the house.



BTW im not a mortgage advisor, but have just applied for a mortgage last week under the new scheme

[frisbee]

You may fail the affordability checks that they've introduced for these mortgages (and supposedly for other mortgages).

As hooky said: the help to buy scheme is a guarantee the government makes to the bank, if you default the government pays them 15% of the cost + your 5% deposit means the bank doesn't loose out. You'll pay high interest rates 5%+ for this type of mortgage, with a 25% deposit I'm paying less than 2.5%.

As you are a special case I would try an independent financial/mortgage advisor. They can probably find a conventional mortgage at a much lower interest rate for you.

[hooky]

Going by what youve said, to buy the house you want with the deposit you have, you are going to need to borrow £85k regardless of any scheme,

As Frisbee said, you need to find a mortgage advisor that can strike a bigger loan for you.

[Gymbob]

Yeah there both stupid.. they do it the wrong way round imo... if you cant save a ok deposit of like at least 10% why should you be able to get a 600k mortgage :S

Anyway its ok just found out I can borrow 106k, mrs just confirmed a new job (was just asking on here in case she didn't get it) so I can just apply for a normal mortgage..

Now do I sell the car and do a 30% deposit @1.99% or.... keep the car and 20% deposit @ 2.8%..... :-/

[frisbee]

£420 vs £335 per month.

I would keep the car.

[Kieran_E1]

the new guarantee scheme is riddled with clauses and hoops. looked at it for a client but decided against it.

you MUST use a fully fledged IFA not a mortgage broker btw

[clive]

I'm looking to buy a house next year.

Where are you finding 2% mortgages for first time buyers?

I plan on putting down a 30% deposit.


Sent from my iPhone using Tapatalk - now Free

[m44t-xx]

I'm looking to buy a house next year.

Where are you finding 2% mortgages for first time buyers?

I plan on putting down a 30% deposit.


Sent from my iPhone using Tapatalk - now Free

2%....that's crazy!! I guess saving these days for a house is ridiculous. I'm looking to buy in 2/3 years with around 40/50% mortgage., possibly less if I can at the time

[frisbee]

I'm looking to buy a house next year.

Where are you finding 2% mortgages for first time buyers?

I plan on putting down a 30% deposit.


Sent from my iPhone using Tapatalk - now Free

From what I could work out: the first time buyer bit is completely irrelevant, you are just looking at general mortgages with a 30% LTV.

Don't forget to include the fees when you compare interest rates. Although I'm guessing you would be looking at a size of mortgage that would be a fee-free one.

[frisbee]

2%....that's crazy!! I guess saving these days for a house is ridiculous. I'm looking to buy in 2/3 years with around 40/50% mortgage., possibly less if I can at the time

Are there are reasons why you are waiting so long? If you have a 20-25% deposit and you know where you want to live I would at least do the sums now.

[m44t-xx]

Are there are reasons why you are waiting so long? If you have a 20-25% deposit and you know where you want to live I would at least do the sums now.

The reason being, he money has been tied up for another couple of years and I'm better to wait for the account to mature to get the full benefits and interest while it's in there.

[clive]

Are there are reasons why you are waiting so long? If you have a 20-25% deposit and you know where you want to live I would at least do the sums now.

I've been holding back from buying due to being made redundant twice at the age of 26..

I want to be 110% sure I'm in a good position before making such a big commitment.

Bigger the deposit, the less I'll have to pay back each month, more comfortable I'll be.


Sent from my iPhone using Tapatalk - now Free

[Gymbob]

I'm looking to buy a house next year.

Where are you finding 2% mortgages for first time buyers?

Sent from my iPhone using Tapatalk - now Free

I plan on putting down a 20-30% deposit.

There are plenty about, most are fixed for 2 years, HSBC are offering 1.48% at I think it was 50% LTV or 60%, but nationwide offer 1.99% for 70% LTV which is who il be going with as there my building society/bank, also first time buyers/long customers there also get a reduced setup fee, its normally £1000, but its £400 see what different banks have to offer but imo nationwide are a good bet

£420 vs £335 per month.

I would keep the car.

Also it will be cheaper than this as im doing it over a 40 year period (im 23) so il just save up each year and pay capital lump sums off, think the contract is 10% of the initial buy price

Works out at £318 (keep the car) or £239 (sell it and buy another in spring time) :-/

[clive]

I've got a bank with nationwide.

Got like 50quid in it but never use it!


Sent from my iPhone using Tapatalk - now Free

[Gymbob]

your still a long time customer so should be sorted if you wanted to go with them

[Mikesx13]

Works out at £318 (keep the car) or £239 (sell it and buy another in spring time) :-/

Jealous of those repayment amounts

You could barely rent a room in a house for that much!

We're just looking into this and the help to buy guarentee scheme looks pants as the lenders are still seeing it as high LTV = high risk and charging rates associated with that (5%)

Their other help to buy scheme for newbuilds looked a better bet as they provided a 20% loan meaning you could approach the mortgage company with essentially a 25% deposit giving you access to better rates, shame there's no newbuilds around here and that the average cost of a fairly poxy 3 bed is over £200,000

[frisbee]

I plan on putting down a 20-30% deposit.

There are plenty about, most are fixed for 2 years, HSBC are offering 1.48% at I think it was 50% LTV or 60%, but nationwide offer 1.99% for 70% LTV which is who il be going with as there my building society/bank, also first time buyers/long customers there also get a reduced setup fee, its normally £1000, but its £400 see what different banks have to offer but imo nationwide are a good bet



Also it will be cheaper than this as im doing it over a 40 year period (im 23) so il just save up each year and pay capital lump sums off, think the contract is 10% of the initial buy price

Works out at £318 (keep the car) or £239 (sell it and buy another in spring time) :-/

Some of the mortgages with fees have a minimum mortgage amount but even if they don't check the sums vs a fee free mortgage as it may only be a tenner a month or something more.

Also if the mortgage rate is so low you may be better off saving and investing the money rather than paying off capital.

[frisbee]

Jealous of those repayment amounts

You could barely rent a room in a house for that much!

We're just looking into this and the help to buy guarentee scheme looks pants as the lenders are still seeing it as high LTV = high risk and charging rates associated with that (5%)

Their other help to buy scheme for newbuilds looked a better bet as they provided a 20% loan meaning you could approach the mortgage company with essentially a 25% deposit giving you access to better rates, shame there's no newbuilds around here and that the average cost of a fairly poxy 3 bed is over £200,000

I looked at new builds but you loose 15-20% instantly*. Houses are expensive where we are, I got pretty lucky to find a very decent place locally and didn't have to move to the flood plains of Gloucester or Tewkesbury.

*I'm assuming that the land registry prices on rightmove are accurate for new builds and include any discount the buyers have negotiated.

[clive]

I was thinking of new build.

For the fact of 5 year guarantee.

I wouldn't like any dreaded payouts on something with in the first few years of committing myself to a mortgage.



Sent from my iPhone using Tapatalk - now Free