MegaSack DRAW - This year's winner is user - rgwb
We will be in touch
Here is my question
How does this work if you have more than the 5% deposit already.
Lets say, made up numbers, that the bank is prepared to lend you 150K, the government will put in 37.5k and you have the 12.5k deposit, total 200k, if you then find a house that is 230k, and have the extra 30k sitting in the bank can you still use the scheme to get the mortgage, or does the fact that you have the large deposit mean that you dont fit the parameters and can't do it.
Anyone have any experience of this?
Can't help with your question, but I thought that they'd pulled the scheme.
From what I have read previously, it doesn't matter.
If the house is under £600k and isn't being rented out or bought as part of a business etc, then you are fine.
Not according to the Halifax they haven't
The .gov website says
The government lends you up to 20% of the property's value as an equity loan;
You'll need a deposit of at least 5%;
You'll need to get a mortgage of 75% of the property's value.
I cannot decipher this into my situation, the "at least 5%" infers that you could have a larger deposit, however the "You'll need to get a mortgage of 75% of the property's value" sound like an issue as in my case I would not have a mortgage of 75%, the mortgage would only be about 70%.
I can feel another call to the mortgage adviser coming on but thought I would ask here as I have never had a question go unanswered on here.
My mistake Steve, FFL is to be withdrawn from February. As you were!
just to be aware - this scheme is on new builds - the scheme for established houses / flats works very differently where they only guarentee a certain percentage, you pay a 5% deposit and then you pay a 95% mortgage...
which is only good if you have a good constant salary...