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Equity Loan, Shared Ownership and Help to Buy ISA combined?
Onemanarmy
Posts: 56 Forumite
Good morning,
I'm a first time buyer wondering if the government's Equity Loan, Shared Ownership and Help to Buy ISA can be used in conjunction? My example is a newly built house advertised as £67,000 for a 40% share could I get an Equity Loan on this amount so I'd only pay 5% of the 67,000 equating to 3,350 and then use my help to buy ISA so I would only pay £2800 for the deposit.
I'm aware there are mortgage payments to pay back as well as the monthly rent which is £230 but I'm wondering if my calculations are corrected or whether Equity Loans and Shared Ownership can't be used together.
Many Thanks
I'm a first time buyer wondering if the government's Equity Loan, Shared Ownership and Help to Buy ISA can be used in conjunction? My example is a newly built house advertised as £67,000 for a 40% share could I get an Equity Loan on this amount so I'd only pay 5% of the 67,000 equating to 3,350 and then use my help to buy ISA so I would only pay £2800 for the deposit.
I'm aware there are mortgage payments to pay back as well as the monthly rent which is £230 but I'm wondering if my calculations are corrected or whether Equity Loans and Shared Ownership can't be used together.
Many Thanks
0
Comments
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I would say they wouldnt be as you can easily get a 95% LTV mortgage in a shared ownership.0
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Just to add with S/O the point is that you would then buy the rest of the property. You wouldn't really want an equity loan to pay off rather than actually buying the house?0
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You can't combine SO and HTB - EL.
You can use the HTB - ISA for your deposit, but don't forget the bonus won't arrive until later.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 -
Your deposit would be £3350 then we had to show the HA proof of our fees for £2.5k. By the time they asked we had paid £1.5k so we had to provide a credit card statement to show the fees0
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Thank you very much for your help.
I appreciate that even if the combination was an option I would only end up purchasing 2% and it wouldn't be worth it. I think the Shared Ownership would be more suitable for my current situation since I probably wouldn't be able to get the mortgage for the 75%.0
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