-
2
What are the time frames up to receiving your Help to Buy Authority to Proceed?
Naturally you can spend as long - or as short - as you like choosing a Help to Buy property you're keen on; although please note that the scheme in its present form ends in 2021 but has been extended for first time buyers only and with other conditions up to 2023 (see box above).
Once you've lodged your reservation fee with your developer and received the proof/reservation form, you can then instruct your Help to Buy Solicitor on the same day and then complete your Help to Buy application on that same day as well.
After that you should normally expect to receive your Authority to Proceed within 4 working days of the agent's receipt of your forms or to be told that you've been turned down (although you should be accepted if you've carefully checked your eligibility).
-
3
What are the costs up to receipt of your Authority to Proceed (ATP)?
- Developer's reservation fee: £500 and upwards
-
Solicitor's deposit fee: £200 and upwards
[SAM Conveyancing charges £160]
You do not have to pay a fee to your Help to Buy agent for your application.
-
4
Can you get a Help to Buy Mortgage without an Authority to Proceed?
No. Your Help to Buy Mortgage Broker (click to get a free consultation with an Independent Help to Buy Mortgage Broker) can only engage with the lenders offering Help to Buy Mortgages if you have an ATP in place and this is also the case also if you apply to any of these directly.
-
5
What restrictions does the Authority to Proceed inform your broker/lender of?
Any mortgage you're granted has to be capped at 4.5x household income and the whole loan cannot be for more than 45% of the whole price of the property (and this is only for Help to Buy London; for the rest of the country, it's 25%).
-
6
How long does the Authority to Proceed last for?
Your Authority to Proceed lasts for 3 months. In most normal situations this should cover the period when you get your Help to Buy Mortgage in place - i.e. you get your mortgage offer for your Help to Buy property - and when your solicitor gathers together the mortgage offer, valuation and Council of Mortgage Lenders form (which lists any incentives the developer has offered you such as, for example, white goods or paying your stamp duty - this should not be more than 5% of the value of the property.
Once your solicitor has sent back all these documents to your Help to Buy agent, the agent, if satisfied, then issues your solicitor with a
Help to Buy Authority to Exchange (ATE)
(click to find out more), which allows you to proceed to the next stage of the Help to Buy conveyancing process, Exchange of Contracts.
According to the official wording from Help to Buy agents:
"Within this period of time we would expect to have received the pre-exchange documents, issued out an Authority to Exchange and for Exchange of Contracts to have taken place."
-
7
Help to Buy Authority to Proceed Expired - what do you do?
Situations might occur, such as a delay in getting your mortgage in principle, which cause your Help to Buy Authority to Proceed expired beyond its 3 month limit.
In this situation you/your solicitor must simply email your Help to Buy agent and request an extension.
FAQs
1. The figures on the mortgage offer don’t match the Authority to Proceed on file, what do I need to do?
The figures that are on the Authority to Proceed are the figures that your Help to Buy agent has given you approval on. If the figures do differ then your agent needs to issue out an amended Authority to Proceed. In order for them to do so, they have to run the new figures through their Affordability Calculator so there is no guarantee that the figures will be amended.
2. The valuation price has come back at lower than the selling price, can you still proceed?
No. Your Help to Buy agent won't allow a case to proceed if your property has been valued at less than the Full Purchase Price. The property would either have to be re-valued or the builder lower the price.
Thinking buying through Help to Buy?
You'll need to get an experienced Help to Buy property lawyer on board. Our solicitors have masses of experience in successfully guiding our clients through the scheme and our fees are great value for money.
* Fixed Fee – No Sale No Fee – On all Mortgage Lender Panels