Offset mortgage with Help to Buy

Fire_Power

Hello,

I was wondering whether using the help to buy initiative limits the type of mortgage you can take out. E.g if you use help to buy can you still get an offset mortgage, and any future savings you have can you put them into the offset mortgage account before paying towards the equity loan?

Thanks in advance!

kingstreet

If there's an offset product available, you can use it.

AFAIK no lender offers such a product, but TBH I've never been asked for one, so I've never looked for it.

amnblog

Those using help to buy are hardly likely to have the kind of sums on deposit to make offsets of value, I cannot see the help to buy offset as a viable product.

Fire_Power

Thanks for the replies.

Suppose hypothetically speaking, you had 5% for deposit but also a bit extra for emergencies etc (that you don't want to put on the deposit). Could you get the help to buy equity loan and put your emergency fund in an offset mortgage account?

Fire_Power

Another thought...are you still allowed to use help to buy with 5% deposit if you still have some money left over in your bank as emergency fund?? Presumably you don't have to spend every penny of your savings as deposit, even if this comes to more than 5%??

Is the criteria that you must have 5%, and as long as you have that (and satisfy the other criteria), can you get an equity loan for he remaining 20% deposit? Is there any restriction on holding other savings?

kingstreet

There is no restriction on other savings. As long as you can put in the minimum and meet affordability on the mortgage, you qualify.