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Buy another property while on help to buy
drivecrazy
Posts: 14 Forumite
Hello , One of my friend has bough his first house with help to buy. now he is planning to buy a new property as an investment? i was thinking we are not entitled to buy a new property ( investment ) while the help to buy loan is not closed ? any feedback ?
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Comments
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Is it a HTB Equity Loan or a Mortgage Guarantee? How has it changed from the first sentence (One of my friend...) to the second sentence (...we are not entitled...)?
For Equity Loan:
The property purchased must be your
only residence. Help to Buy is
not available to assist buy to-let investors or those who will own any property other than their Help to Buy property
after completing their purchase.
http://www.helptobuy.org.uk/docs/default-source/default-document-library/help-to-buy-equity-loan-buyers-guide.pdf?sfvrsn=4
For Mortgage Guarantee it's not so clear, there is an implication that it might be possible as the eligibity says:
You must not own any other property anywhere in the world at the time you buy your home supported by the Help to Buy: mortgage guarantee scheme
http://www.helptobuy.org.uk/mortgage-guarantee/eligibility0 -
Its HTB Equity Loan. Since I bought our first house more or less same time as my friend with help to buy Equity Loan and i thought I wont be able to buy our next property for investment unless i close the this loan . But he said we are ok to buy second. so i wanted to clear the confusion Hope this clears the sentences.
Thanks for the link . This question on Q&A section says a clear answer.
"Can I own a Help to Buy home and buy a second home? "0 -
Q Can I own a Help to Buy home and buy a second home?
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.
http://www.helptobuy.org.uk/docs/default-source/default-document-library/help-to-buy-equity-loan-buyers-guide.pdf?sfvrsn=4
Page 17.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Maybe the friend is buying through a company, which would be a separate legal entity, though morally dubious.
Idly wondering what happens if someone inherits a (second) property.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
Maybe the friend is buying through a company, which would be a separate legal entity, though morally dubious.
Idly wondering what happens if someone inherits a (second) property.
Although it's not specifically mentioned that I could see I would be very surprised if a company was allowed to use Help to Buy.
I'd imagine that on inheritance either the HtB home would have to be sold or the loan repaid (by using the equity in the inherited property).0 -
Although it's not specifically mentioned that I could see I would be very surprised if a company was allowed to use Help to Buy.
I'd imagine that on inheritance either the HtB home would have to be sold or the loan repaid (by using the equity in the inherited property).
I meant a company could buy the second property (outright or with a BTL mortgage) while the director kept hold of their help-to-buy property. This wouldn't break any rules, though be against the principals of help-to-buy.
You may be right on an inherited property, though it may not be solely owned, so selling may not be straight forward.I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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