Question about the home to buy help

[SillyMoomin]

Getting all in a muddle with the online calculators!

Current mortgage £85k left to pay off. Let’s say we have equity of about £80k. Obviously wouldn’t want to use all of that as a deposit so would suggest £65k as a deposit.

Using the 20% help to buy, is a £300k house (so would need £235k mortgage minus 20% which is £47k) so total mortgage needed would be £188k

Is that right? Is that how it works?

I didnt think you could get help to buy if you already have a current mortgage, Only if you sell and then dont own your own home.

Please speak to a help to buy specialist mortgage broker

I’ve read on the gov website I can use it if I already own my own home, that’s fine. I’m just getting a bit confused about the numbers!

If you are buying a new build have they bumped the price of the property up much because of htb.
Are you down south where prices are dropping or up north where they are stable.
You have a fair bit of equity so unlikely to go into negative equity.
It only really matters if you are going to move again in the future.Or if remortgaging for a better interest rate.

We’re in the north, though DH would move to the Shetland’s if he could

(I’d miss Aldi’s aisles of doom )

Silly. 300k house. 60k htb. Leaves 240k to fund.

Bear in mind that the 20% is a percentage not a set figure that the government 'give' you and that it has to be paid back within 25 yrs. Also you will pay intetest from yr 5

On a 300k house you can get 60k HTB loan, if you put 65k down then you would need a mortgage of 175.

Oh, thank you, so the HTB bit comes before the mortgage needed not after.

£175k mortgage hmmmmm.....

We're in the process of buying a new build with HTB. The minimum deposit is 5%, you can put more down if you have it, we're putting 10% down, using the 20% government loan and then only need a 70% mortgage which obviously gives access to the better rates. Happy to answer any questions as we bought our current house on HTB 4 years ago so have experienced all sides of it!

Isn't the threshold £200,000 for help to buy? I'm not sure you'll get it for a £300,000 house. That's what it is in Scotland anyway.

Not sure about everywhere but it's not where I am. Essex England. We are going through the process on a 350k home.

I think the help to buy isa has a 200k limit but not the equity loan.

No fancypants it is not. Also London can have up to 40%

No, 600k is the threshold.

I think £600K is the threshold for London.

I'm not sure, I thought it was 600k nationwide but in London you could borrow 40% instead of 20%. Regardless, it's definitely not 200k, the house I'm buying is 300k (not London).

Ahh ok, maybe I've got it wrong, be interested to know if it covers £360k as that's what we're looking at next year but I got the info here....

www.mygov.scot/help-to-buy/how-it-works/

Ah, I wonder if it's slightly different in Scotland?

It is completely different in Scotland. AFAIK the maximum home value is £200k and there is no interest after 5 years (just equity share). Link says max Govt stake is 15% rather than the 20% in England. Also worth bearing in mind that AFAIK you can only use HTB if you could not otherwise afford to borrow. Therefore there are big differences in the income of those who can access it and where and to what extent it causes market distortions in the price of new builds.