Help to buy 5% deposit

[BlackST]

Just a general question really.
Has anybody used the help to buy scheme?

Say I want to purchase a house for £110k.
If I save up £7k would the government lend me £7k to make up the 10% deposit?
Also for the £100k mortgage, how much before tax would need to be earnt to be able to borrow this much?
It would be just me applying for the mortgage.

Bit vague I know I just want a rough idea.

[BlackST]

Thanks for the quick reply. Earning over £20k.
I'm in a relationship but the application would be just me.

[BlackST]

Sarnie said:

The Government doesn't borrow you 5%, it's just a standard 95% mortgage, with a guarantee in the background provided to the lender from the Government. So, at £110k you are going to need a £5,500 deposit and subsequently a £104,500 mortgage.
It's all a bit of a farce really as there are standard 95% mortgages with lower rates than the HTB 95% products........

Ah ok.
I weren't sure there were 95% mortgages available anymore, especially with better rates than the 5% interest rate Natwest are quoting on their site?

It's information i'm gathering as i'll be saving the next 8 months, I hope to be able to put an offer in for an house before Christmas time.

[BlackST]

Sarnie said:

95% mortgages never went anywhere, they have always been available, just with smaller lenders.

And yes, there are better rates available than 5%............

I'll get in touch nearer the time then if that's possible.
Thanks for the help.

[BlackST]

Chris, who is struggling to pay the repayments that you know?
I'll be able to pay repayments, easily. Easily if the interest rates rise to 8-9%. I wouldn't be looking to buy an house otherwise.

Help from the government would help me get into an house upto a year sooner, i'd prefer that.