I have recently completed a DAS in Scotland and will be looking to buy next year. I would also be looking to use the first home fund in Scotland in order to increase my deposit, there is a set group of lenders; having looked into two - the Mansfield Building Society & Vida Homeloans, I would possibly meet their criteria. The first home fund in Scotland will be restarting in April 2021. I wonder if this would be possible to get a mortgage with a deposit of 25% (roughly) under these circumstances? I will be over 6 months from clearing my DAS by the time April comes around
It is unfortunately very difficult to speculate what may or may not be available in the future, as you can imagine criteria, funders and products are changing often.
I can be clear that combining a completed DAS and first home fund will be extremely challenging and I don't expect either of the lenders listed to accept this combination.
My suggestion would be to save as much as possible over the coming months whilst ensuring your bank account is well conducted.
Best of luck
hi Hayley, totally appreciate it is difficult to speculate but the first home fund is designed to increase the deposit of buyers? And the lenders I stated accept both first home fund and completed DAS In their criteria, I understand I’m not a mortgage broker so I won’t be privy to all the information out there. But LTV of 75% was available to someone in my circumstances in this info found online? Would I need to have 25-30% deposit myself? Sorry for all the questions I just don’t understand the point of these government schemes if they do not help with getting a mortgage on a smaller deposit.
I appreciate you are looking for Specific information and reassurance online, neither can I provide I’m afraid as the situation isn’t here and now
DAS in itself it treated differently to some specific items as in Scotland this is deemed a court managed Debt Management Plan (Equivalent)
whereas most lenders interpret and associate as a formal insolvency as an IVA, which precludes many lenders including the ones you mention
Add in lenders appetite changing and the wider world changing makes it difficult to interpret
What I would commit to is that 25 percent deposit currently is the entry point opening up additional options.
All the best
thanks for your info Hayley. Just to clarify, 25% deposit of my own money? Not including any help to buy or first home fund?
25 percent with help to buy or own money I’d expect to work, if included first home fund I wouldn’t like to speculate as may not work...
I’m not deliberately being unclear it’s just there has never been a harder time to predict the future...
perfect thank you - help to buy may be an option
I totally understand things are difficult to predict at the moment, thank you for your help