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    • K789
    • By K789 6th Dec 17, 7:30 PM
    • 21Posts
    • 1Thanks
    K789
    Government mortgage help scheme confusion
    • #1
    • 6th Dec 17, 7:30 PM
    Government mortgage help scheme confusion 6th Dec 17 at 7:30 PM
    Could anyone please clarify the slight confusion I have with the government mortgage help scheme?

    I was reading up on it and it said: If I can find my 5% deposit, then the government will loan me a further 20% towards my deposit.

    My confusion is how I would have to repay their loan?

    Would I have to start making monthly repayments straight away along with my first monthly mortgage payment?

    Would the governments 20% loan be like a normal personal l loan that would run over 5-10 years (if so that could make my monthly bills very expensive). Or could I spread the loan repayments over the 25 year mortgage term?

    Just slightly confused, can someone please break this down for me in simple terms.

    Thank you
Page 1
    • djphig
    • By djphig 6th Dec 17, 8:45 PM
    • 12 Posts
    • 1 Thanks
    djphig
    • #2
    • 6th Dec 17, 8:45 PM
    • #2
    • 6th Dec 17, 8:45 PM
    Ok so generally speaking...

    You pay £1 a month for the first 5 years. After that you pay a small amount every month. Usually 1.75% interest per annum

    The loan becomes repayable after 25 years or on sale of your house whichever is first
    • kingstreet
    • By kingstreet 7th Dec 17, 8:03 PM
    • 32,366 Posts
    • 17,376 Thanks
    kingstreet
    • #3
    • 7th Dec 17, 8:03 PM
    • #3
    • 7th Dec 17, 8:03 PM
    Could anyone please clarify the slight confusion I have with the government mortgage help scheme?

    I was reading up on it and it said: If I can find my 5% deposit, then the government will loan me a further 20% towards my deposit.

    My confusion is how I would have to repay their loan?

    Would I have to start making monthly repayments straight away along with my first monthly mortgage payment?

    Would the governments 20% loan be like a normal personal l loan that would run over 5-10 years (if so that could make my monthly bills very expensive). Or could I spread the loan repayments over the 25 year mortgage term?

    Just slightly confused, can someone please break this down for me in simple terms.

    Thank you
    Originally posted by K789
    Are you buying a newbuild?
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
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