Does a help to buy equity loan count towards the LTV value?

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sally335
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by sally335 » Wed Aug 30, 2017 6:54 pm
Does a help to buy equity loan count towards the LTV value? We are 2 years 10 months out of IVA (started 12/09, finished 11/14). We have a 5% deposit and 20% help to buy equity, so mortgage will be 75%. We have an agreement in principle from Halifax, and the amount we need to borrow is about 45k under their affordability calculations. Current credit rating is excellent on Experian and Equifax. Good on Call credit.

We are waiting on a price from the developers and I am driving myself crazy trying to work out our chances.
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Foggy
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by Foggy » Wed Aug 30, 2017 7:00 pm
Have a word with Ryan and / or Shaun, who are both whole of market brokers ... details on this link:

memberlist.php?mode=team

You will find them in yellow.
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Michael Peoples
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by Michael Peoples » Thu Aug 31, 2017 8:33 am
Be careful about building your hopes up as an agreement in principle does not mean guaranteed acceptance. I would be surprised if Halifax grant the loan once they are aware of the IVA and you must inform them and get permission from your IP. I hope it works for you but I have serious doubts.
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Lisa Thomas
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by Lisa Thomas » Thu Aug 31, 2017 8:52 am
Michael - they are out of the IVA and over 6 years has passed since the start date so hopefully it shouldn't be too much of an issue.
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Michael Peoples
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by Michael Peoples » Thu Aug 31, 2017 8:54 am
I must be going mad Lisa and thanks for pointing that out. I thought they were still in the IVA but from reading the post properly now they should be fine.

My apologies and thanks again Lisa.
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Foggy
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by Foggy » Thu Aug 31, 2017 10:08 am
Lisa Thomas wrote:
Michael - they are out of the IVA and over 6 years has passed since the start date so hopefully it shouldn't be too much of an issue.



Of course much will still depend upon the questions asked (have you ever ...?) and the lenders own criteria towards IVA's.
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sally335
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by sally335 » Thu Aug 31, 2017 7:17 pm
Thanks for the replies. I contacted Ryan, who emailed very good advice. I have moved towards cautiously optimistic. The bank's advisor is aware of our IVA history, but underwriters may feel differently.

I think the answer to the question seems to be the HTB equity will count towards the 25% deposit, and we should be able to proceed with a high street lender. If not, I'll be in touch with Ryan again :)
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