Help to Buy Scheme

[bobthedragqueen]

I'm happy I stumbled upon this thread. @under the ivy I think we're in the same kind of situation, I'm also looking to buy in about 1.5-2 years. I'm definitely going to research more into Lifetime ISA's instead to see if it's worth it

So glad it’s helping others! It’s a bloody minefield!

 

[Giggling Squid]

Ahhh I see! That makes sense! I think mine is a similar situation as there isn’t even a show home yet!

That is so helpful, thank you! I will definitely try to bag some freebies.

If there is anything else you think would be helpful, please let me know as until we go on Saturday I’m a bit all over the shop with it.

A few things I wish I’d known.. you don’t have to use their solicitor/mortgage advisors, we did and I feel a bit like they weren’t entirely in our side. Nothing major just a feeling I got. I’d choose my own next time

Make sure you see plans before you reserve - talking technical drawings so you can see layout, etc - it’ll help you picture where you’ll be living! Also what the development will be like once complete. I did my own research as our development is huge and will end up more like a small town but a lot of other people don’t seem to have done this and now future phases and the shop are being built are getting a nasty surprise

If there’s anything else I’ll add it

 

[Lauz666]

Oh ive just discovered I don't have to pay anything on my HTB loan until the end of year 5. So happy I thought it was due in June phew!

 

[Alexaj]

I was the first build on my road so they threw in splashback tiles in the bathroom and £1000 towards flooring (with one of their suppliers).

Personally I had lots of little problems with HtB. They took so long in the application process my mortgage quote actually expired and I couldn't get the same quote again (the market changed). It was an absolute pain in the bum trying to buy myself out of the loan after 5 years because their customer service was terrible. Couldn't contact by phone, different person picked up my email each time, requesting the same things, not being able to find my details etc etc. That took far longer than it should have. All in all, I'd still recommend though!

 

[Blakelycakey]

We are looking at the help to buy scheme. There is a development coming in our local area been waiting a fair while for planning but it’s finally been approved. Really hope we are able to get one. This sounds a bit silly but how do you actually go about it? Who do you contact etc? X

 

[Lauz666]

So would I better off opening a Lifetime ISA, paying in each month then getting the bonus from that when I want to buy? I’m looking at buying in 2-3 years time.

Me personally I would

 

[under the ivy]

The HTB ISA is different to the help to buy loan scheme (really helpful them having the same name...), help to buy loans are where the government loan up to 20% of the value of the home, and it enables first time buyers can get access to better mortgage rates with a lower deposit- so the deposit is minimum 5% but with the loan you then only need a 75% Mortgage

So would I better off opening a Lifetime ISA, paying in each month then getting the bonus from that when I want to buy? I’m looking at buying in 2-3 years time.

 

[under the ivy]

Sorry if I’m de-railing the thread but has anyone had experience with Moneybox for Lifetime ISAs?

On reading people’s experiences with HTB, I’m having doubts now! I will be a single buyer so I want what is best for my money!

 

[bobthedragqueen]

Begin with P by any chance? We had one where they built out, sold on and then 3 months later when everyone had moved in it was suddenly discovered that every single house was built in the wrong location to the planning permission! Over 200 homes

Please don’t tell me it’s Persimmons

Who is the housebuilder? Sorry being nosey and have worked in the development industry before. Some have better reputation than others.

Persimmons! Don’t ruin all my dreams please!

 

[bobthedragqueen]

Exchanging was quick, but we then had to wait 6 months for them to build the actual house. It doesn’t work like buying a ‘normal’ house, as they expect you to exchange ASAP after reservation and then complete once it’s been signed off - we bought off plan so early sale for them, and a long wait for us.

We didn’t manage to negotiate anything as it didn’t even occur to us until after we had reserved (sounds awful but we kind of bought the house without much research). They told us basically that they wouldn’t negotiate on anything as we had already committed to buying it, but we could forfeit our deposit and try again... but because it was off plan they didnt have much to play with so we just cracked on because we really wanted the plot we’ve got

Ahhh I see! That makes sense! I think mine is a similar situation as there isn’t even a show home yet!

That is so helpful, thank you! I will definitely try to bag some freebies.

If there is anything else you think would be helpful, please let me know as until we go on Saturday I’m a bit all over the shop with it.

 

[Be More Pacific]

Yep, it totally makes sense. But as a first time buyer this is all totally new to me and not something I would have thought about before!

I appreciate that. I'm just trying to explain the reasoning to you.

I will say that the new build industry, in particular, is extremely cut throat.

 

[bobthedragqueen]

Hey!

I wondered if anyone had any advice on using the Help to Buy Scheme? We have just passed the affordability checker (had to do so before our first appointment due to covid apparently )

We are positive we are going to proceed and put a deposit down but wondered what everyone’s experiences were like with the scheme and on how quick the process was for you?

I’m a little scared and excited! Mortgages feel so grown up.

Thank you x

 

[Countrybumpkingirl]

Yep, it totally makes sense. But as a first time buyer this is all totally new to me and not something I would have thought about before!

Who is the housebuilder? Sorry being nosey and have worked in the development industry before. Some have better reputation than others.

 

[Be More Pacific]

A few things I wish I’d known.. you don’t have to use their solicitor/mortgage advisors, we did and I feel a bit like they weren’t entirely in our side. Nothing major just a feeling I got. I’d choose my own next time.

You're right. Their customer is the builder not you. 100%. And a lot of the time, you will have to go with who the builder recommends due to their contracts with certain mortgage brokers (and solicitors) and, if you refuse, they will sell to someone else. They are fucking ruthless.

I agree about their mortgage people. I spoke to one today about the affordability checker for the scheme and he was trying to encourage me to do the mortgage in principle there and then! Before we’ve even had the appointment!

That's pretty standard. Why would they waste three to four hours of a mortgage advisor's time if you're just going to be immediately declined the minute they try and out the application through?

 

[bobthedragqueen]

We bought through help to buy in 2019.. we never would have been able to buy without it because of the house prices round here. Happy to answer any questions you have

Timescales, it took us just over 5 weeks from reservation to exchange (expected within 28 days by our developer, our mortgage advisor handled it all for us, but our authority to proceed came through really quickly, and then the delay with exchanging was down to our solicitor, the authority to exchange came through quickly too.

One thing (not related to HTB) make sure you do any negotiations for things to be included (upgrades, flooring etc) BEFORE you reserve... we made a big mistake with that

Congrats! I hope you’re loving your new house!

5 weeks seems so quick! How exciting

Can I ask more about the negotiations regarding upgrades? Do you think there’s the possibility to do some haggling? Think I’m gonna have to get the other half to be bad cop on that one!

x

Following this as we are hoping to use this, I don’t know many people who have so would be good to hear some experiences

Hey! How exciting for you! I am the same... no one I know has used the scheme and due to house prices in my area we have no chance of getting anything that’s nice and not the size of a shoebox!

 

[bobthedragqueen]

I bought using HTB in 2018. We have a persimmon house (they are actually not that bad - we had some minor snags that were quickly dealt with and 2 years on they are still willing to come out and plaster cracks etc for us )

It completely depends on how well the houses are selling as to if they will throw in extras like flooring, upgraded kitchen etc If the estate you're buying on is popular you haven't a chance in hell of getting anything for free.

The HTB process was simple for us, our mortgage broker/solicitor did everything for us. It look about 6 weeks I think from start to finish.

But like others have said it's not ideal. After 5 years you'll be left with the loan to pay back. For us it was worth it to get on the property ladder quicker and with a much lower rate mortgage. We've already saved the money to pay it off, but if you know you won't be able to after 5 years then make sure you calculate exactly how much you will be paying a month so you're not caught out.

So glad to hear it worked out for you! Really helpful info too regarding the freebies... if you don’t ask you don’t get right

We have factored the loan payment in to our monthly budget so we aren’t caught off guard 6 years later although I know that’s not simple for everyone!

 

[bobthedragqueen]

You're right. Their customer is the builder not you. 100%. And a lot of the time, you will have to go with who the builder recommends due to their contracts with certain mortgage brokers (and solicitors) and, if you refuse, they will sell to someone else. They are fucking ruthless.



That's pretty standard. Why would they waste three to four hours of a mortgage advisor's time if you're just going to be immediately declined the minute they try and out the application through?

Yep, it totally makes sense. But as a first time buyer this is all totally new to me and not something I would have thought about before!

 

[bobthedragqueen]

A few things I wish I’d known.. you don’t have to use their solicitor/mortgage advisors, we did and I feel a bit like they weren’t entirely in our side. Nothing major just a feeling I got. I’d choose my own next time

Make sure you see plans before you reserve - talking technical drawings so you can see layout, etc - it’ll help you picture where you’ll be living! Also what the development will be like once complete. I did my own research as our development is huge and will end up more like a small town but a lot of other people don’t seem to have done this and now future phases and the shop are being built are getting a nasty surprise

If there’s anything else I’ll add it

Again... so so helpful! Will definitely do some research on future plans for the area and the plans for the house itself.

I agree about their mortgage people. I spoke to one today about the affordability checker for the scheme and he was trying to encourage me to do the mortgage in principle there and then! Before we’ve even had the appointment!

Look forward to more tips when you think of them!

I was the first build on my road so they threw in splashback tiles in the bathroom and £1000 towards flooring (with one of their suppliers).

Personally I had lots of little problems with HtB. They took so long in the application process my mortgage quote actually expired and I couldn't get the same quote again (the market changed). It was an absolute pain in the bum trying to buy myself out of the loan after 5 years because their customer service was terrible. Couldn't contact by phone, different person picked up my email each time, requesting the same things, not being able to find my details etc etc. That took far longer than it should have. All in all, I'd still recommend though!

Glad you’re getting on well and despite problems, are happy with your choice!

How did you wangle the freebies? My boyfriend is telling me I’m gonna have to be bad cop in this situation!

 

[kadykal95]

So glad to hear it worked out for you! Really helpful info to regarding the freebies... if you don’t ask you don’t get right?

We asked for free flooring...it was a flat out no. The houses were selling so fast.

We actually looked to buy on another Persimmon estate back in August, an hour away from where we live now and they offered us free flooring, upgraded kitchen, integrated fridge/freezer and turf. The houses weren't selling as fast. We didn't end up moving in the end but it was completely different from our experience before!

 

[bobthedragqueen]

We asked for free flooring...it was a flat out no. The houses were selling so fast.

We actually looked to buy on another Persimmon estate back in August, an hour away from where we live now and they offered us free flooring, upgraded kitchen, integrated fridge/freezer and turf. The houses weren't selling as fast. We didn't end up moving in the end but it was completely different from our experience before!

Totally dependent on how well they’re doing then it seems... maybe I should play to hard get