Use help to buy loan or all our savings??

[Helppppp123]

Hi all

After 3 years of house hunting finally found a home within schools catchment area etc. We could either use all our savings and lend a few grand off my mum for a deposit or use the help to buy loan and put some savings down but keep some and no loan from mum. Any ideas?

Thanks

Anyone please?

Could your Mum afford to lend you money? Better to avoid loans generally if you can

Yes she could afford it, I would be paying her back what I would have put to the side for the loan

Where do you live? I did H2B and it was a no brained because I live in Scotland and there is no interest and you don't pay it back unless you sell the house. My brother did it in England and has to to pay it back in instalments, I don't think I would have done it in that situation.

Is this he government scheme where they put in 20% and you put in 5%?

It's not necessarily 20%, mine wasn't. It depends on a few factors.

In my opinion help to buy only works if within the 5 years before you start to pay interest you can either a) pay it all back or b) afford to put the extra in your mortgage. If you can do either of these things it’s a great interest free option. We did it, paid back £1k less than we borrowed as house was valued less than we paid!

Avoid the help to buy loan if you can. It’s only interest free for the first 5 years and if you were to sell the house the repayment is proportionate to the then value. If house prices go up that could be significantly more than you borrowed. (Although if prices drop you could end up paying back less than you ‘owe’.

I would save money each month to make sure I paid back the loan and I’m thinking if possible to only borrow 10% rather than 20%. I would rather avoid a loan aswell but it’s scary to let go of my entire savings pot so I’m torn.

Sorry PP I’m not in Scotland as if I was this would be a no brainier!! I’m in England

I would borrow from your Mum if I were you and she'd be happy with it