help to buy mortgages

[gingajewel]

Does anybody know much about help to buy mortgages? I have a 5% deposit for the mortgage we can afford to have and I dont know what to do now? Also do you have to have an excellent credit rating to get one of the help to buy mortgages? I have no clue what the next step is! Thankyou

 

[hayz_baby]

A htb mortgage will work in the same exact way that a normal mortgage will work but the government guarantee your mortgage which is why the bank is more willing to lend at a 95% ltv. The only main clause is you are not allowed to own any other properties. You also don't have to stick with new builds.

In regards to borrowing you will need to have good credit but it also goes down to how much the bank is willing to lend. These days mortgages tend to be based more on how much the bank feels you can pay back each month so they will assess your outgoings.
Best place to start (IMO) is with your own bank..as long as you run your account well they should be able to tell you how much they will lend without doing a credit check. If you are happy with what they say it's worth getting a dip (decision in principle) as then you know EXACTLY how much you can borrow and will guarantee it for 12-16 weeks which will give you a good standing in regards to buying

 

[gingajewel]

Thankyou so much, I really appreciate your reply, it has helped me so much! We have been renting for ten years but have some savings, so the next step is to make an appointment with my bank? Thanks again x

 

[hayz_baby]

Yeah just ring them up. Don't just go for them though, do shop around but I personally think starting there is a good place to start

Hth x

 

[gingajewel]

Your a star :-D thankyou

 

[Caite]

I'd be careful about going to banks on your own - I guess going to your own would be OK - but my mum was advised not to get quotes (or whatever they're called) from lots of different banks, else they might look at all the searches on your credit rating and wonder why no-one has given you a mortgage.

I got my mortgage with a 5% deposit. It was a few years ago now (2010) so not Help to Buy. I got shared equity, which I think is basically the same thing but, I think, shared equity is only for first time buyers.

I went to a mortgage broker. She got me a really good deal. She wasn't local - she was recommended to me by the sales executive for the development I was buying my house on. I did everything over the phone and via email, never met her in person, but they were all lovely that I spoke to on the phone or email, and very helpful. And even though I only had a 5% deposit, I got the same rate as someone who had a 25% deposit as the bank only had to loan me 75% of the purchase price. My current interest rate is 3.79% and I pay about £400 per month

 

[maryp0ppins]

I'd be careful about going to banks on your own - I guess going to your own would be OK - but my mum was advised not to get quotes (or whatever they're called) from lots of different banks, else they might look at all the searches on your credit rating and wonder why no-one has given you a mortgage.

I got my mortgage with a 5% deposit. It was a few years ago now (2010) so not Help to Buy. I got shared equity, which I think is basically the same thing but, I think, shared equity is only for first time buyers.

I went to a mortgage broker. She got me a really good deal. She wasn't local - she was recommended to me by the sales executive for the development I was buying my house on. I did everything over the phone and via email, never met her in person, but they were all lovely that I spoke to on the phone or email, and very helpful. And even though I only had a 5% deposit, I got the same rate as someone who had a 25% deposit as the bank only had to loan me 75% of the purchase price. My current interest rate is 3.79% and I pay about £400 per month

the search will not show up on your credit history unless you actually apply for the mortgage. You can search around and see what each bank has to offer without this effecting your credit history.
we did it all ourselves and it was really easy, done over the phone.

 

[Abz1982]

I would advise a FA or a broker. We used the LIFT scheme in Scotland and went to a FA who was used to these - as only some lenderes will do these mortgages. They can also search and it wont touch your rating in the slightest.

We got 74% ltv or there about.....house was 127k, we had a 6k deposit, and the Scottish Exec paid 25k. We used the loophole of having the ltv on the property as a whole, not just our share with would have been like a 95% ltv! So we got a 4.99% interest rate, which changes to 3.99% in december.

OH had a defualt, however that was coming of in the December and we got the mortgage in the october. FA said the will ignore defaults that expire in less than 3 months. We also had ratings each of about 630....but we each earned 23 & 13k respectively.

I would definitely advise getting an FA who is used to these schemes and ask them which solicitors they advise, as there will be extra paperwork involved so you will want them to know what needs done so nothing is missed.

 

[Caite]

It was a financial adviser who advised my mum not to got to lots of different places for mortgage quotes.

What banks etc advertise is just the average rate, though, isn't it? So if your credit rating was significantly different, that would affect what they could lend you and what interest rate would be charged

As I said, it is nearly 4 years since I bought my house and nearly 8 years since I helped mum sort out a mortgage for herself, so things might have changed in that time, I guess.

 

[hayz_baby]

It's a simple mortgage calculator that will tell you what rate for your ltv and deal. Most banks, if you use it for your main acc will b able to give you a good indication of how much they can lend you as they have a lot if your info anyway.
They have to ask your permission first before doing a credit check. You are right tho, but you are right you need to be happy before you do a credit check as you dont want too many or you may need to want 3-6 months before you can try again

 

[Mummy Bean]

I would go on to MA.com money advice service.

It will go through all the types of mortgages and what the banks are looking for. The Mortgage review has just come out in April which has changed the way banks can lend. it is no longer about multiples of salary but actual affordability.

Second sign up to Experian you get a free 30 day trial. You can check your report and give you advice on how to improve your score.

thirdly arrange a meeting with an independant mortgage adviser - you will find one in most estate agents and the advice free (up until you sign a mortgage) They will go through your options and will have access to better deals then on the high street.

and if you can get a fixed rate...interest rates WILL go up in the next 12 months so dont get caught out with a cheap tracker rate