Do i qualify for Januarys Mortgage Guarantee Scheme?

deano3

Hi,

I have a house which I rent out and intend to keep, I am now looking for another dwelling to reside in.

I initially thought I would not qualify for the scheme. (which may still be the case)

Having just stumbled across the Help to buy website it says;

The property is to be your only residence anywhere in the world (you will be required to sign a legal statement to that effect).

A residence is an establishment where it was originally or currently being used by a host as their main place of dwelling or home

As the house I purchase would be my only residence, in that it would be the only house in which I reside, do I qualify?

whacks

doubt it I think it also mentions something like...

You cannot rent out your existing home and buy a second home through Help to Buy.

...also from the faq for the current help to buy scheme




Q Can I own other homes and buy a Help to Buy home?


[FONT=Arial,Arial][FONT=Arial,Arial]No. Help to Buy is designed to assist you to move up the housing ladder and must be your only residence. This means you will be expected to sell your current home if moving up the ladder. The disposal of your current home will be verified by your solicitor/conveyance before you can proceed to exchange contracts on the Help to Buy Home.

[/FONT]
[/FONT]Q Can I own a Help to Buy home and buy a second home?


[FONT=Arial,Arial][FONT=Arial,Arial]No. Help to Buy is designed to assist you to move up the housing ladder. If you can afford to purchase another home you will have to repay the Help to Buy equity loan.
[/FONT][/FONT]

kingstreet

The Help To Buy scheme being discussed by the OP is HTB -Mortgage Guarantee, not Help To Buy - Equity Loan.

I suspect HTB - MG will mirror the provisions of the current NewBuy scheme and you will not be able to own and let other property as the Government has made it known it will not be permitted.

In addition, if you need a 95% mortgage, you are unlikely to find a lender willing to offer such a LTV with a let property and mortgage in the background.

deano3

Thanks for your response, i have however found a lender at 95% with a property in the background. Just got a little more saving to do first. My eggs are in one basket though, which is why i was looking at mg.

kingstreet

If you have one option, see if more open up in January.

It's early days yet and no-one has a full picture of the scheme.