Can I avail of Help to Buy Scheme even if I have the purchase price in cash?

P

Pratch

Registered User
Messages
25
Say house costs €400k and a person has €400k savings (I don't but just illustrative).

Is there anything stopping this person taking out a 70% variable rate mortgage just to avail of the help-to-buy scheme and then, immediately after receiving the help-to-buy grant, paying off the entire mortgage? Say the HTB comes through in 2-3 months after drawing down, can the mortgage then just be paid off entirely without having to give the HTB grant back?
 
HTB payment goes straight to the developer as part of the deposit payment process. I recall that you need to hold on to the new build for 5 years otherwise you will need to repay a certain percent of the HTB you were awarded. I don't think there are mortgage repayment rules.. someone else might know more on that specific detail
 
Pratch said:
Is there anything stopping this person taking out a 70% variable rate mortgage just to avail of the help-to-buy scheme and then, immediately after receiving the help-to-buy grant, paying off the entire mortgage?
Click to expand...
It's mad but there is nothing stopping you doing this. The HTB only requires you to borrow at least 70%. They don't have a restriction on your current wealth

The only issue I could see is that a bank may not offer you a mortgage. Why would they when you can clearly show the funds to purchase outright.

If you were to do it, I would consider some of the cashback offers from lenders and borrow up to 90%. You would not have to wait any length of time to clear the mortgage, technically you could do it the next day.
 
You must log in or register to reply here.
Back
Top