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Hello Guys! In August 2018 I and my partner bought our first flat (home), We had the help of the Help to Buy Equity scheme. This is a great one bed flat in MCR city centre. The mortgage is a 5 yrs fixed at 2.34% We are planning to have a family at some point and for this, we need the biggest house. adn rent our current flat. We are thinking to buy a second property in 2023 and let this apartment. For doing this, we need to pay the Help to buy first. The bank that holds our mortgage is Halifax and they are offering us an "additional borrowing" of £43.000 at 2.84% for 35yrs at fix term of 3 and 5 yrs Help to buy outstanding amount is £36000 Summary: House purchased in £170.000 An outstanding mortgage with Halifax: £118.662 Outstanding with Help to buy £36000 The bank is evaluating the flat in £190.000 Additional borrowing offered: £43.000 The biggest house needed in 3 years (£250-£300k) (I have some savings) Questions: Do you think is possible to pay the HTB with this additional borrowing and after 3 years refinance the house to get part of the principal for a new biggest house and rent the 1 bed flat? Do you think could be a better idea to get this money to get a buy to let apartment in Manchester Leeds Liverpool and them use this to refinance to get the principal for the house? Many thanks for your advice
Hi everyone, My, now, husband and I bought a great property in Manchester last year using the Help2Buy scheme. It's all in my husband's name as my part-time salary at the time wouldn't have helped gain the mortgage. We only put down a 5% deposit and took an equity loan for the rest of it, and we used the Help2Buy ISA scheme to get 25% of our savings added onto our deposit. A fantastic idea at the time as it was the only way we could have ever got onto the property ladder and stop paying rent. - so no regrets... BUT Now we find that we are stuck with an equity loan that doesn't allow us to invest in another property unless we pay it off (technically as the house isn't in my name, I could get a property on my own, but the Help2Buy house can't be rented out) We know that our options are to pay off the equity loan (difficult) so that we can do what we want with the property, or for me to go solo in investment (a little daunting) and for us to keep living in the Manchester Help2Buy home. I was wondering if anyone else had been in this situation, using the Help2Buy system to get into property, and then moving on from there? I'd love to hear from you if you have! Thanks!