Help to buy ISA - How long until i can buy to let?

adamwillow85

Hi everybody!

i'm new to this forum. I've recently started help to buy isa and plan on saving for just 1 year and then buying my first house.

My question is i know that you can't use it to buy to let but i would like to know how long i would have to keep / live in my first house (with use of small of the deposit from help to buy isa) if i was to buy somewhere else to live and then rent out my original first house?

Any information would be highly appreciated, thanks Adam

Bluebirdman_of_Alcathays

I want the taxpayer to subsidise my potential property empire. There's no guidelines for a good reason

MARTYM8`

In theory the day after you get the bonus from the Government - assuming you have completed.

You will of course have had to take out a residential mortgage to qualify - so you would need to convert that first.

I merely would ask why wouldn't you wish to buy a home for you to live in - before getting into buy to let?

adamwillow85

Hi martym8

Oh right I see as I'm new to mortgages / housing ladder you see and yes I would live in it first but maybe only 12-18 months if possible and then would like to change the mortgage from my only first time buying (with use of first house isa) into a buy to let house and rent it out as I'll be in position financial after then (with help from my family) to do so.

So would this be possible todo in the way I imagine above do you think?

adamwillow85

anybody shed a little bit more light on this situation as obviously i doubt i would have to keep th house as my own house until i pass away haha.

But on a serious note i would be living in the house for 12-18 months and then would like change the mortgage to a buy to let and buy somewhere else as my actual homes, just its says the house isa cant be used for buy to let, so would it be ok todo this in this way that i've just mentioned anybody?

I just dont want to get stuck living in a very small house for say 5 years if thats the terms and then for example i have a family and need a bigger house etc?

silvercar

Of greater concern would be whether the lender will consent to you letting the property.

adamwillow85

oh right i see, so do you mean if i had paid upto the standard 25% of the current house value this would more than likely be ok, or do you mean something different?

Yorkie1

Having bought on a residential mortgage, if you wish to let the property out then you either need to convert to a BTL mortgage, or ask your existing lender for consent to let. Lenders have different rules about whether they grant CTL and, if so, for how long and on what terms (often an extra charge or hike in interest rates). CTL is not a long-term solution.

If you wanted a BTL mortgage it would be a case of applying for one from a lender in the usual way at the right time - use a broker as most products are not available on the high street.

Nobody can say now what the position will be for you in 12-18 months' time either for CTL or BTL.

adamwillow85

Thanks for the replies everybody but just one more question to clarify providing I am accepted for a buy to let loan or ctl.

If I had my first house with use of the house is a scheme, would I be tied into any contract with respects to how long I would have to live in the house before I changed it to buy to let mortgage?

Thanks for your future responses ...

silvercar

As for the help to buy ISA, I doubt the answer to your question has even been written.

For a mortgage, generally lenders require that you have been living in the property a period of time (to avoid suspicion that you were only living there to get the cheap mortgage deal), that you have a good reason and that you can show that you can afford to rent out the property and house yourself elsewhere.

Good reasons would be your employment taking you elsewhere for example.

If consent to let is refused, you will then need to remortgage to a different lender or get a BTL mortgage from your current lender. That would require a LTV of 80% maximum.

adamwillow85

Thanks this helps clear up a few things