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spiker

HTB / Mortage work around

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Hi folks,
I am really against paying interest to the banks via mortgage.

I believe with Help to Buy it is mandatory to take a mortgage?.
If i had 200k in lifetime savings could i take a short term mortgage to make me eligible for the help to buy loan and then after the mortgage term pay the mortgage off in full and only be left with  the HTB loan which is interest free for 5 years?


Gaming the system a bit, but is it legally possible?

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You would have to pay interest on the mortgage during those first 5 years, so if you are "against paying interest to the banks via mortgage" then the obvious way not to pay interest would be to buy for cash.

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29 minutes ago, Dorkins said:

You would have to pay interest on the mortgage during those first 5 years, so if you are "against paying interest to the banks via mortgage" then the obvious way not to pay interest would be to buy for cash.

And ask for a hefty discount.

You never save money by buying with debt.

At least, not with a large deposit,

I have a small (under 1x LTE). It costs me 1.5% a year. 10y, fixed for 5.

50% has been paid off in 2y (v just 20% if i stuck to mortgage term). Ill let it run now, for the last 3 years of the fix then tidy up the left over.

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11 hours ago, spiker said:

Hi folks,
I am really against paying interest to the banks via mortgage.

I believe with Help to Buy it is mandatory to take a mortgage?.
If i had 200k in lifetime savings could i take a short term mortgage to make me eligible for the help to buy loan and then after the mortgage term pay the mortgage off in full and only be left with  the HTB loan which is interest free for 5 years?


Gaming the system a bit, but is it legally possible?

HTB houses are overpriced to factor in the HTB disbursement.

HTB is interest free for you for 5 years but not for the builders, they have to pay a fee to the government so that buyers like you can avail HTB.

If you really are against paying interest then buy in cash.

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  • 293 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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