Help to buy ISA- property bought with cash

Gent76 · 8 June 2018 at 11:56AM

Hello,
Me and my partner are Help To Buy ISA subscribers. We meet conditions to obtain 25% allowance, however we may be in position where no mortgage is required to buy a house.
We live in council house and we are entitled to buy with Help To Buy. Our discount along with Help To Buy ISA savings may be enough to cover purchase. I am aware, however, that ISA allowance is available only with a mortgage. This is not available dor cash buyers.
I do not find it fair, as we pay rent over 10 years now and this should be equivalent of a mortgage.
In ideal situation we could use ISA allowance for house refurbishment.
Is there any other option for us?

eskbanker · 8 June 2018 at 12:08PM

As you say, one of the conditions for a HTB ISA bonus is that the property purchase must involve a mortgage. Although you may feel that's unfair, the flip side of the argument is of course that those who are in a position to purchase a property with cash and no mortgage aren't considered to need further help from government/taxpayers, as the scheme is intended to assist those who genuinely need help to get a first foot onto the property ladder.

There isn't any specification of the size of mortgage though, so it may be worth running some numbers to see if it's worth taking out a small mortgage and potentially paying it off very quickly....

diggingdude · 8 June 2018 at 10:45PM

I assume you are paying full market rate for your property?? Otherwise you are already getting a Brucey bonus from the tax payer so don't think you are in a position to complain really

Help to buy ISA- property bought with cash

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