Buy cash or Help to Buy

A

Adelie

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Considering buying a new build in an estate. We have enough cash to cover the house plus related expenses. Should we take a 70% mortgage anyway to get the 30k relief? Sounds obvious to us that we should, but is there any reason not to? Maybe the bank won’t give it when we have the savings? Or there is some rule in the Help To Buy that we can’t? I read the website and can’t see anything. We meet the rules otherwise.
 
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Not only should you avail of Help to buy, you should take out a 90% LTV mortgage that gives you 2% cashback! If you're going to potenially buy the house for cash anyway. You can repay a mortgage in full at any time. With a variable rate, there will be no penalty. With a fixed rate, there might be a penalty.
 
I guess we’ll go variable rate otherwise the 30k would get eaten up in interest or else we pay a break fee that we can’t predict how much it will be.

Will banks agree to lend to someone who has enough cash to pay up themselves? Especially on a variable? It won’t really be worth their while in the end if we pay it back within a couple of months

(Should have posted under mortgages forum probably)
 
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