Help to buy

simonporter007

I'm just starting to look at help to buy as we're planning on a move this year. What I can't seem to fathom is if you require a specialised HTB equity loan mortgage or if you can apply for any 75% LTV mortgage.

If the latter is the case, what with ISA rates being so low at the moment, would it not be wisest to put the money in an offset mortgage, reducing the mortgage interest but at the same time saving the money for the bulk 10% or 20% pay off option?

001LJ

This is not a great scheme as often to lower priced homes (ie starter homes and apartments) are sold around 20% higher than their market value. We were looking in to this scheme but worried that when we sold the property if we didn't get the same value we bought for we would not be able to pay back this loan on schedule without using our built up equity, leaving us back at square 1. I would ego suggest massive over payments in the mortgage and loan to try counter this.

MoneySaverLog

My thinking is it's best to overpay on the mortgage as I cannot find a ISA that would pay me more than the interest rate I will be paying back on the mortgage at the moment.

Mortgage rate is low right now, so I would be best to overpay. These over payments could then be used to weather the storm if rates increase after the fixed rate period.