Equity Loan

mimiduck

Hi

I am really looking to buy a property however as mine and my partner's wages are not that amazing our mortgage would be quite small as well. I have been reading about Equity loand an help to buy etc. My worries are, both of us are not originally from here, we have properties in our home countries (they are worthless though and empty) I have heard you are not allowed to apply for the loan if you have properties even outside of UK. Is there any scheme that would take our situation in a better light? And also, how would someone know we have properties abroad?

kingstreet

Making a false declaration to a UK Government department (HCA) isn't a great idea if you plan to live here in the long-term and I'd like to think any broker handling this for you took the same view.

From the HCA's declaration on the HTB Property Information Form;-

The Applicant acknowledges that if they own a residential property that they will sell their interest in that property (or properties) in advance of completing their purchase of the Property with the assistance of a Help to Buy equity loan and that it is a condition of the equity loan that the Property which is the subject of the Help to Buy equity loan will be the only residential property they have any interest in for the duration of the Help to Buy equity loan.

It is a criminal offence to knowingly or recklessly make a false declaration or withhold information reasonably required in connection with this application.

The Applicant has read the above acknowledgement and confirms that the Applicant has provided accurate and up-to-date information relating to the Applicant's application for assistance under the Help to Buy Initiative.

The Applicant understands that if it is found that false information has been given to obtain assistance under the Help to Buy Initiative either knowingly or recklessly, appropriate legal action may be taken and the Agency may take action under its Equity Mortgage.

mimiduck

So is there another possible scheme for people who own a property abroad?

kingstreet

Not that I can think of.

You simply get a mortgage based on what you can afford plus your deposit and that tells you what you have to spend on a property.

silvercar

If the overseas properties are worthless and empty then dispose of them.

mimiduck

They are 'unworthy' at the moment, however both properties have been passed on in the family. I have no intention of ' disposing' them. I was thinking of changing the owner etc. but that gets too complicated as there might be family feuds in the end so we do not want to risk this. Thanks for your help anyway, I will just have to survive how it is.