Help to Buy & Porting Mortgage

YoungBaker

Hi there

I currently am in a fixed mortgage with Woolwich on my current property.

A new development has began near us and we have been considering a purchase making use of the Help to Buy (Scotland) scheme.

Whilst I understand in order to be eligible for the HTB scheme, we cannot own another property at the time we purchase the new build (ie. we must sell this property first) I am wondering in regards to the mortgage itself... Would we be able to apply for a Woolwich mortgage using the HTB scheme and port our existing mortgage as part of this?

Or would we need to bight the bullet and effectively pay the mortgage off in full (and then suffer a 3% early repayment fee) and apply for the HTB mortgage as brand new?

Not sure if that all makes sense but would appreciate if anyone has been in a similar scenario.

Thanks

libf

If you can sell and purchase at the same time, then that's allowed under help to buy, although it's often not practical if you're buying off plan because of the timescales involved (may be different in Scotland though).

Have you checked help to buy is available? I seem to remember reading the latest batch of funding has been used in Scotland already...

Caz3121

libf wrote: »

Have you checked help to buy is available?

was going to say this also
The Help to Buy (Scotland) scheme is fully subscribed and is no longer accepting applications.
http://www.gov.scot/Topics/Built-Environment/Housing/BuyingSelling/help-to-buy

YoungBaker

Thanks for your replies, that sounds promising.

Yes, whilst the Help to Buy main scheme is now fully subscribed applications remain open for the Help to Buy Small Developers scheme... Ie. If you are purchasing a new build from a small developer who is registered with them you can atill apply (which we wil be).

This also helps with the time scales for us as the houses are not scheduled for completion until Q4 so it isnt like there is any 28 day fast move to have everything done by with te large developers.

Thnks

amnblog

Your current mortgage product may not be suitable for Help to Buy purchases and this will prevent you being able to port it.

YoungBaker

This was one of my concerns amnblog.

We are still at the really early stages of this and the development has just began so we are just trying to get our heads round it all at the moment. We hadnt originally considered buying under to HTB originally so just trying to figure out if it could be an option for us or not.

In the case our mortgage product wasnt applicable for HTB, I guess we would just need to weigh up the pros and cons of paying the early repayment pee vs using HTB.

libf

YoungBaker wrote: »

In the case our mortgage product wasnt applicable for HTB, I guess we would just need to weigh up the pros and cons of paying the early repayment pee vs using HTB.

Freudian slip? :rotfl:

YoungBaker

:rotfl::o

Ha ha definitely just a dodgy iPhone predicting my message!

YoungBaker

Just spoke with Woolwich/Barclays and they advised their Help to Buy products are not eligible to port a mortgage to.

So basically faced with the options:

1. Face early redemption fee of 3% to apply for HTB scheme.

2. Dont apply for HTB scheme and port mortgage.

Thanks for those that replied.