Public Funds Query
I am currently working as a Research Scientist on a Tier 2 visa and is applying for ILR on the basis of long term residence (10 years route) in about 3 weeks time. I am in UK since 2007.
I am looking forward to buy a new build house with Help to Buy: Equity Loan scheme where the Government lends you up to 20% of the cost of your newly built home, so you’ll only need a 5% cash deposit and a 75% mortgage to make up the rest.
I am also having a Help to Buy ISA saving account with my bank where the Government will boost your savings by 25%.
The mortgage company said that even I have not yet got my ILR and I am on a Tier 2 visa. I can still use Help to buy equity loan and Help to buy ISA account to buy this house.
I am wondering if Help to Buy: Equity loan and Help to buy ISA is counted as a public fund.
If not, Can I buy a house using both even if I haven't got my ILR yet ?
FYI, I am applying for my ILR in 3 weeks time
Thanks very much in advance.
Looking forward to hear from you
Firstly, the help to buy ISA accounts are not classed as claiming public funds, even though the government are the ones who contribute, so there is no need to worry in that regard.
When getting a mortgage it will be down to the policy of each specific bank on whether they will lend you money for a mortgage without Indefinite leave to remain. Some banks may request that you have a certain period of time left on your current visa before they will lend to you. For example - a bank may ask that you provide evidence of 18 months leave to remain.
This being the case, as you are applying for ILR in 3 weeks, it may be worth waiting until you have ILR before making your mortgage application.
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Thanks very much Jason for your prompt reply. Really appreciate
Just in case, If I do get my mortgage approved using Help to buy: Equity loan and Help to buy ISA
Would it affect my ILR application?
Looking forward to your reply
Good morning @gagzzz
Getting a mortgage using the help to buy scheme will have no bearing on your ILR application.