Help to buy with high savings

[buyer2024]

Scenario is my max mortgage 212,000 new build house is 360,00 I have 120k in savings. 212,000 +120,000=332k and use the help to buy to make up the difference.

But just reading I can see your mortgage needs to be at least 70% of the value of the house is this right, even though I’ve maximised my borrowing amount saved like mad for years I can’t avail of the htb, is there any other options or work around for this. I saw the other first home scheme but not sure how that works with savings and also don’t like the fact it increases as the house value increases.

Just seems unfair trying to do everything right and every time I think I’m there I’m still short. Feels like I’m 6 months behind every time.

 

[misemoi]

,

 

[_OkGo_]

But just reading I can see your mortgage needs to be at least 70% of the value of the house is this right, even though I’ve maximised my borrowing amount saved like mad for years I can’t avail of the htb

Yes, this is effectively correct. The HTB is not a very well thought through support mechanism. Despite your diligence to accumulate a significant deposit, you are excluded by your income level. If you had a higher income, you could take out the 70% mortgage, claim the HTB and immediately reduce your mortgage amount...it makes no sense.

I saw the other first home scheme but not sure how that works with savings

I haven't personally used it but I believe the FHS would be suitable for you. You need to:
- be maximising the LTI at 4x income
- have a minimum of 10% of the deposit
which you seem to meet for both.

You can receive up to 30% from the FHS so as an example, you could do the following:
- 59% - borrow €212k from bank
- 20% - €72k equity share through FHS
- 21% - €76k from savings

This would give flexibility to cover costs of purchasing like solicitors, stamp duty, furnishings etc. Once you are in and settled, any remaining savings can be used as a lump sum to overpay the mortgage or clear some of the FHS (although clearing the mortgage would be best)

also don’t like the fact it increases as the house value increases.

I wouldn't worry about this, the major advantage of the scheme is that there is no cost to you and the fact that it is not a loan means you have no regular payments to make on top of your mortgage. Basically it won't stress your monthly finances further than your mortgage payment.

There are charges that kick in after year 5 but these are lower than a mortgage product and can be left to roll up on the equity meaning no regular payments if you do not wish to have them.

It also works both ways in that if property values drop, then the amount you owe drops too. It remains a percentage ownership so it is not a fixed monetary amount.

 

[lff12]

Scenario is my max mortgage 212,000 new build house is 360,00 I have 120k in savings. 212,000 +120,000=332k and use the help to buy to make up the difference.

But just reading I can see your mortgage needs to be at least 70% of the value of the house is this right, even though I’ve maximised my borrowing amount saved like mad for years I can’t avail of the htb, is there any other options or work around for this. I saw the other first home scheme but not sure how that works with savings and also don’t like the fact it increases as the house value increases.

Just seems unfair trying to do everything right and every time I think I’m there I’m still short. Feels like I’m 6 months behind every time.

Doesn't matter - all you have to do is borrow 70% and then pay off some of the mortgage early. Or as other posters have suggested go down the route of the FHS.

 

[PoundMan]

This is an interesting post, as I had also wondered about this same issue. It almost sounds like someone who works hard to save is potentially punished more than someone who perhaps makes no attempts to save. The flip side of the argument is that people could be availing of the grant even when they could afford not to.

 

[misemoi]

Is there any scope to increase your income at all to qualify, even in the short term to get the mortgage and HTB, eg can you do overtime or could you take on work outside of your regular job for a time?

Or have you explored asking for an exemption to your max mortgage borrowings more than 4 times income? Are you in a public service role, I have seen some brokers offer mortgages based on income a couple of increments above existing one that could increase your borrowing potential?