Help to Buy if i'm using a loan rather than a mortgage

ESMnewbie

I have a help to buy ISA, but am going to buy my first home with a loan from family rather than a mortgage.  Does that mean I won't qualify for the bonus on completion?

eskbanker

Yes, it means that you can't claim the bonus, as purchases supported by a HTB ISA bonus must be secured by a legal mortgage.

Subject to credit status and so on, you could potentially take out a small mortgage alongside the family loan and pay it off quickly, but the costs of doing so would chew up a fair chunk of your bonus....

masonic

There have been reports of people getting a private mortgage from family in order to qualify. This would need legal input and have its own costs.

jimjames

Alternatively could you get a mortgage and then repay it after 12 months or whatever period if that makes it worthwhile for the HTB bonus

ESMnewbie

Thanks everyone.  I had a feeling a family loan wouldn't qualify but it's good to get some more input, so thanks very much..  I think the legal fees and fees for paying off a mortgage after a short period would probably make it not worth it, particularly bearing in mind all the extra effort.  First time I've posted a question on MSE, so it's really nice to get helpful replies