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HTB Govt Equity Repayment & Move to Buy to Let
iliveinapond
Posts: 4 Newbie
Hi All,
Myself and my partner's circumstances have changed recently and are looking to tidy up loose ends ahead of a new arrival..
My OH bought house No.1 in 2016 using HTB + Govt Equity Loan @ 20% - we are about to finish our first 2 year fixed. I am not on the mortgage for the property as I had just started my own business wouldn't have been a dependent on my OH.
We would now like to purchase a larger second home whilst keeping hold of house No. 1 and renting it out - which is not permitted by the GEL - the most straightforward way to resolve the situation is to pay off the 20% - however the capital required to do this in my name.
Question -
What due diligence is performed when paying off GEL? is it like getting the mortgage with 3 months bank statements? Or is it simply a payment in which case I can simply transfer money across to my OH?
Timing of switch to a buy to let mortgage is the next issue..
Is it advisable to complete the process of buying ourselves out of the GEL / HTB and then remortgaging - tying that in to a 5 year fixed and once we have decided on the second house request permission to rent the property?
Thank you all in advance - any pointers will be much appreciated.
Myself and my partner's circumstances have changed recently and are looking to tidy up loose ends ahead of a new arrival..
My OH bought house No.1 in 2016 using HTB + Govt Equity Loan @ 20% - we are about to finish our first 2 year fixed. I am not on the mortgage for the property as I had just started my own business wouldn't have been a dependent on my OH.
We would now like to purchase a larger second home whilst keeping hold of house No. 1 and renting it out - which is not permitted by the GEL - the most straightforward way to resolve the situation is to pay off the 20% - however the capital required to do this in my name.
Question -
What due diligence is performed when paying off GEL? is it like getting the mortgage with 3 months bank statements? Or is it simply a payment in which case I can simply transfer money across to my OH?
Timing of switch to a buy to let mortgage is the next issue..
Is it advisable to complete the process of buying ourselves out of the GEL / HTB and then remortgaging - tying that in to a 5 year fixed and once we have decided on the second house request permission to rent the property?
Thank you all in advance - any pointers will be much appreciated.
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