Interest only mortgages with Help to Buy

Daisy_84

Question for mortgage advisors.

Has it ever been possible to get an interest only mortgage with Help to Buy? 

I can’t imagine it would be possible now, but I’m curious about the previous years.

kingstreet

Nope.

HTB closed on Monday for new purchases.

Daisy_84

kingstreet said:

Nope.

HTB closed on Monday for new purchases.

Apologies my question was badly worded.

I’m asking about historical purchases. In 2018 was it possible to get a help to buy mortgage which was interest only?

K_S

@daisy_84 Afaik, for both the 2021-2023 version and the pre-2021 version of H2B, you couldn't have an equity loan without having a repayment mortgage in place.

Daisy_84

K_S said:

@daisy_84 Afaik, for both the 2021-2023 version and the pre-2021 version of H2B, you couldn't have an equity loan without having a repayment mortgage in place.

Thank you. I’m so confused. I’m struggling to understand why new build properties around me bought at the same time as me are suddenly scrambling to sell. I got me wondering if they had interest only mortgages.

I hope I won’t be pushed into a position of being forced to sell. I have a meeting with a mortgage advisor tomorrow who has been researching my options. My HTB loan interest kicks in June next year and fixed term also ends.

Edi81

It could be a coincidence. Lots of people buying at the same time at a similar time in their lives and now they want/need larger properties. 

housebuyer143

Daisy_84 said:

K_S said:

@daisy_84 Afaik, for both the 2021-2023 version and the pre-2021 version of H2B, you couldn't have an equity loan without having a repayment mortgage in place.

Thank you. I’m so confused. I’m struggling to understand why new build properties around me bought at the same time as me are suddenly scrambling to sell. I got me wondering if they had interest only mortgages.

I hope I won’t be pushed into a position of being forced to sell. I have a meeting with a mortgage advisor tomorrow who has been researching my options. My HTB loan interest kicks in June next year and fixed term also ends.

Maybe you just hit the nail on the head. HTB kicks in, in a few months as well as much higher interest rates. 

Daisy_84

Edi81 said:

It could be a coincidence. Lots of people buying at the same time at a similar time in their lives and now they want/need larger properties. 

Most of the houses being sold are already large. It’s the ones with detached 4 and 3 bed houses that are selling. They don’t even have children. 

Daisy_84

housebuyer143 said:

Daisy_84 said:

K_S said:

@daisy_84 Afaik, for both the 2021-2023 version and the pre-2021 version of H2B, you couldn't have an equity loan without having a repayment mortgage in place.

Thank you. I’m so confused. I’m struggling to understand why new build properties around me bought at the same time as me are suddenly scrambling to sell. I got me wondering if they had interest only mortgages.

I hope I won’t be pushed into a position of being forced to sell. I have a meeting with a mortgage advisor tomorrow who has been researching my options. My HTB loan interest kicks in June next year and fixed term also ends.

Maybe you just hit the nail on the head. HTB kicks in, in a few months as well as much higher interest rates. 

Yes, that kind of goes without saying.

The point is, why do they have to sell? Yes interest rates are rising and HTB interest kicks in, but their are options to get a new mortgage and also initial interest of help to buy is only 1.75%.

housebuyer143

Daisy_84 said:

housebuyer143 said:

Daisy_84 said:

K_S said:

@daisy_84 Afaik, for both the 2021-2023 version and the pre-2021 version of H2B, you couldn't have an equity loan without having a repayment mortgage in place.

Thank you. I’m so confused. I’m struggling to understand why new build properties around me bought at the same time as me are suddenly scrambling to sell. I got me wondering if they had interest only mortgages.

I hope I won’t be pushed into a position of being forced to sell. I have a meeting with a mortgage advisor tomorrow who has been researching my options. My HTB loan interest kicks in June next year and fixed term also ends.

Maybe you just hit the nail on the head. HTB kicks in, in a few months as well as much higher interest rates. 

Yes, that kind of goes without saying.

The point is, why do they have to sell? Yes interest rates are rising and HTB interest kicks in, but their are options to get a new mortgage and also initial interest of help to buy is only 1.75%.

You said they are all large properties without kids. Potentially they over extended themselves and want to leave before the rates gets too much to afford.  Getting a new mortgage at 6% up from maybe 1%-2% is going to hit some people really hard, especially if you factor in the extra payments on the HTB.

Could just be a coincidence. Normally one person sells up and it gives others the same idea. You sometimes see multiple up on the same street at similar times for maybe this reason.

Martisha

K_S said:

@daisy_84 Afaik, for both the 2021-2023 version and the pre-2021 version of H2B, you couldn't have an equity loan without having a repayment mortgage in place.

Do you know please if in 2019 HTB was available to non FTB?