FirstBuy Mortgage Advice

jone5y

Hiya

Can anyone give me an idea of costs for the following:

We're looking at the firstbuy scheme on a house for £200,000. We find the 5% deposit, then with the governments & builders £40,000.

How much will the equity loan cost per month roughly?

I know interest gets applied after the first 5 years but for the first 5 I need to know roughly how much to expect to pay so that we can work out how much the mortgage/ loan will be per month (obviously I have figures for the mortgage)

Also any other advice on the first buy would be greatly appreciated!!!

Thanks

kingstreet

Firstbuy involves a second charge, also known as an equity loan, where you put down a 5% deposit and the builder or government gives you a second charge.

The equity loan is free of repayments for the first five years.

http://www.homebuy.co.uk/firstbuy.aspx

On selling you repay the percentage of the house value you borrowed at the outset and this can be a higher or lower £ amount, depending on how the property value has changed.

How much will the equity loan cost per month roughly?

1.75%, increasing in line with inflation.