Help to buy isa

PotPoodle

Can you use a help to buy ISA for a property that will be purchased without a mortgage?

Bridlington1

PotPoodle said:

Can you use a help to buy ISA for a property that will be purchased without a mortgage?

You can't get the 25% bonus if you're a cash buyer.

PotPoodle

Thank you.

PotPoodle

So if you borrow money (not through a mortgage - I know this is still considered cash), and have a small mortgage can you get the bonus then? Is there a percentage of the purchase price that needs to be mortgage to clam the bonus?

Alexland

PotPoodle said:

So if you borrow money (not through a mortgage - I know this is still considered cash), and have a small mortgage can you get the bonus then? Is there a percentage of the purchase price that needs to be mortgage to clam the bonus?

There is no percentage but it's a bit extreme to use a mortgage just to get the HTB ISA bonus. Look carefully at the additional legal and lender costs involved not just in setting up the mortgage setup but also on redemption. A lender would usually have a minimum lending amount and may not be happy when you declare the private borrowing.