Want to move but have homebuy direct and house may be worth less than purchase price

skemp1

Hi,

Would like some advice really, the title says it all.

I got a mortgage with the Halifax for £125k and equity loans from the housebuilder and governement for about £66k and I put a £6k deposite down.

The purchase price was £197k and I think it would sell now for around £175k.

How does it work with the equity loans? Will I have to pay the whole amount back?

Thanks for any advice.

AdrenalineJunkie

I have a similar sort of deal with Taylor Wimpey. I believe that the equity loan is done on a percentage rather than monetary value so..

Purchase price £100,000
Equity loan £10,000 (10%)

Sale price £50,000
Equity loan paid back £5,000 (10%)


I believe when you have an offer made on the house the equity loan people need to be notified and if its negative then they will send in their own valuers to check the true value of the house before they lose money

This is simply what i have got from when i bought my house so this may not be 100% accurate