Buying a second home with help to buy scheme

ValHaller

Heyseemore wrote: »

Hi all,

Me and my partner have a property which we rent out on a residential mortgage which has consent to let buy the mortgage company. The rent easily covers the mortgage, and will never be missed.
We have just started a family and have rented a larger property however after 6 months worth of payments I am sick of putting money in my landloards pockets!

.....


I look forward to your replies

Gotta laugh. I suppose you feel for your tenants who are putting money in your pockets

UltraRevenge

1 - You would have to sell to benefit from the HTB
2 - If you have enough deposit why would you bother with HTB (high interest rate)?
3 - if I were you I would do something called 'let to buy'. (only if you cant get second, mortgage.

Hope that helps.

Wallhart

This is not what H2B scheme was designed for. Your trying to profit from the scheme rather than use it as a leg up.

You will almost definitely fall on your !!! with this and be lucky if you don't get prosecuted for fraud. Every point of the H2B process clearly states that it must not be used as a second home and you have to sign multiple declarations.

GwylimT

No you can't, your partner would be unable to get a mortgage, even if she did manage to get a mortgage any payments you made for the property would prevent you from HTB.

The system does allow a working family to purchase a property, its your choice not to sell your property and it has been your choice not to save up for a deposit.

ispookie666

It is a very well thought out plan.
I believe it is going to have a lot of repercussions - not just for mortgage but for the rest of financial commitments and future.
I believe such things were raised when the Chancellor had put this forward in his budget speech and these were put to rest then.

Good luck with your way.

[Deleted User]

The gall of it! Come to a public forum to ask if you can rip off the H2B scheme!

Amatheya81

You have not provided enough financial and circumstantial evidence (moneys coming in and out) information to received informed advice as to whether your wife would be a viable mortgage applicant. You have however laid out a plan to manipulate a system built to help low income family that would otherwise be unable to afford to purchase their own home.

You are not the only person who has worked all their life to earn what they have, there are may of us so that is irrelevant to your question. The fact that you are asking advice on whether you can commit fraud or not is relevant and is why you have received so many negative comments.

It is currently a sellers market with so many people desperate to get on the ladder now that the market has made a substantial recovery so you seem to be in a better situation than most as you have two options. You can save a deposit and purchase a second property legitimately or you can sell your current property to release the equity and purchase a new home with that.