Reply to: Help to buy scheme

[sm02fly]

Has anyone been through this scheme recently? I too am keen to hear others experience when having the affordability check with the HCA/Home Buy Agent. What figures did you submit (for example low salary/high dividend, total from your last Self Assessment/another calculation)?

What evidence were you asked to provide to back these figures up?

Thanks

[dmo]

OP did you decide to take the plunge and use the scheme in the end? or you still deciding?

[ThomserveBAS]

Article from Tony Harris @ Contractor Money added to the main site today:
Contractors are being handed an unprecedented leg-up the property ladder :: Contractor UK

Interesting article - still many unanswered questions for us contractor folks though, especially the one about how the HCA will assess eligibility criteria - on paper, you wouldn't think someone earning upwards of 80k/year would need assistance yet in reality that is likely to be the case.

I really can't decide what to do - part of me thinks I should get >12 months under my belt, the other half thinks I should just get on with it, especially now as we're expecting our first and will actually need the additional space.

[administrator]

Article from Tony Harris @ Contractor Money added to the main site today:
Contractors are being handed an unprecedented leg-up the property ladder :: Contractor UK

[kevpuk]

Scheme is all good so far as I can see - we want to move in a year or so time, and - hopefully! - by then this scheme will have been extended to all houses (i.e. not just new build).
See y'all in a year....

[ThomserveBAS]

Help to buy scheme

Have what valued when we sell? The house? Kinda part of selling a house me thinks...

[DeludedAussie]

Yeah the broker is going to provide me with quotes for a couple of options, the equity share scheme, the mortgage guarantee scheme and a straight purchase then we'll see what wiggle room we have with the developers.

Why anyone would take something like this up is beyond me. You are asking for a while deal of red tape and for what benefit? So you get a 20% loan at 0%?

Just reading about it you will need to have this valued when you come to sell.

Better to buy the contractor way - CASH

[ThomserveBAS]

Oh dear that's good goods though so nothing wrong with that.

I presume the house you want wasn't available on a part ex? Friend of mine in waiting for his to be built and he part ex'd his. Nearly every new build estate was offering part ex on some houses. Won't the developers be open to discussion on the matter? My mates house got sold for 7k under the value he got the part ex as so it isn't always a rip of option.

Even if it isn't on part ex see what they say. You can do a hell of a lot of negotiating on new houses.

Yeah the broker is going to provide me with quotes for a couple of options, the equity share scheme, the mortgage guarantee scheme and a straight purchase then we'll see what wiggle room we have with the developers.

[northernladuk]

Well as if to ensure I have egg on my face over this post, I have received a call from the mortgage broker the developer insists I use and I have an offer on the table from Halifax (who I knew were "contractor friendly") for a decent rate under the equity share scheme.

The "problem" about selling our current house is still going to be difficult for us to manage. We'll need to market our current place with a view to shifting it in time for the new build being ready for us or rent/move in with parents for a while - neither ideal when the other half is pregnant (due August)...

Oh dear that's good goods though so nothing wrong with that.

I presume the house you want wasn't available on a part ex? Friend of mine in waiting for his to be built and he part ex'd his. Nearly every new build estate was offering part ex on some houses. Won't the developers be open to discussion on the matter? My mates house got sold for 7k under the value he got the part ex as so it isn't always a rip of option.

Even if it isn't on part ex see what they say. You can do a hell of a lot of negotiating on new houses.

[kevpuk]

Good egg on face to have, though ?!

[ThomserveBAS]

Well as if to ensure I have egg on my face over this post, I have received a call from the mortgage broker the developer insists I use and I have an offer on the table from Halifax (who I knew were "contractor friendly") for a decent rate under the equity share scheme.

The "problem" about selling our current house is still going to be difficult for us to manage. We'll need to market our current place with a view to shifting it in time for the new build being ready for us or rent/move in with parents for a while - neither ideal when the other half is pregnant (due August)...

[northernladuk]

Sibling's Wife's Mother's Brother's Orangutang?

You got it. It's a right bitch trying to fill in race on the application form. They don't seem to put Primate or Great Ape as an option on the forums anymore.

[SimonMac]

It does look pretty good I must admit. A couple of members of SWMBO's family are looking in to it.

Thing is, paying it back after 5 years won't be easy for the people that this is really aimed at. For contractors or high earners it just equates to a 5 year interest free loan I believe. Certainly not to be sniffed at if you can use it.

Did they ever resolve the issue about a parent or other getting the mortgage for their kids that apply and getting the same deal? I could get some BTL's using SWMBO's families allocation if they don't intend to use it. Have to be point out they will not be first time buyers afterwards though... or I might forget that bit in the rush to get some nice properties

I would be very interested to see the small print though. I can't believe for one minute it is just open season. Surely they will be putting some kind of restrictions on it to make sure that people that need it can benefit rather than well off people just seeing it as cheap money.

Will be looking in to it more when I get the time. If someone could post the links to the details it would be helpful.

Sibling's Wife's Mother's Brother's Orangutang?

[ThomserveBAS]

This isn't true though. For a start I thought it was 2 years but either way many lenders now don't impose this restriction. They will quite happily speak to your accountant if you are midway through a year and also take a mix contracting/perm. I have applied for 2 mortgages with less than 2 years and another with 4+ years and in not one instance was even an eyebrow raised. I explained the situation, they just said send whatever year end accounts I have and my perm details. Not a problem.

I think times and attitude of lenders have changed a lot since the 2 years or we don't talk to you times. Don't take this as a given and jump in. It may be a hiccup with the odd lender but is certainly not a stopper.

Fair point on the 3/2 years thing but I'm speaking from my own experience when looking for mortgages as I've only been contracting since August last year - so to expand, if you are really new to contracting, are refused help by the mainstream lenders and engage the services of one of the specialist IT/contractor brokers, this restriction by the developers WILL cause you problems.

[LisaContractorUmbrella]

I only earn 9k a year Lisa... You should know that by now

Oh yes, sorry, course you do