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Mortgage early repayment when using Help to Buy Equity loan
the_learner
Posts: 183 Forumite
Hi, we made an offer for a new build for £600,000 and we are now considering using the Help to Buy equity loan.
I understand that we must have a mortgage in order to be able to use the help to buy so my plan is:
- Deposit 45%
- Use 25% of mortgage (the minimum required to access the help to buy)
- Use 30% Help to Buy
Since we can ask our families to help a my some money, I was thinking of getting into a mortgage with no fees for the early repayment so that I can close the mortgage right after I get the Help to buy loan in place. The question is: can I early repay the morgage while still keeping the help to buy loan alive, untile the 5 year interest-free period ends?
My idea is to get the mortgage only to be able to gel the Help to buy equity loan but the plan is to keep only the equity loan while repaying the mortgage immediately.
I understand that we must have a mortgage in order to be able to use the help to buy so my plan is:
- Deposit 45%
- Use 25% of mortgage (the minimum required to access the help to buy)
- Use 30% Help to Buy
Since we can ask our families to help a my some money, I was thinking of getting into a mortgage with no fees for the early repayment so that I can close the mortgage right after I get the Help to buy loan in place. The question is: can I early repay the morgage while still keeping the help to buy loan alive, untile the 5 year interest-free period ends?
My idea is to get the mortgage only to be able to gel the Help to buy equity loan but the plan is to keep only the equity loan while repaying the mortgage immediately.
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