New Build 20% loan

Chrisandsarahs

Hi all,

I was after some advice and I'm hoping that someone on here can help me. I've posted this in the House Buying section as well, but thought someone on here might be able to help.
We are looking at moving home and have found a new build property that we really like. We are interested in the government 20% scheme to help us out with the mortgage. I've found lots of information on how to apply and what happens, but I can't find any info on what happens when it comes to paying it back.
Does anyone know?
The house is on the market for £265,000. The 20% comes to £53,000. We also have a £30,000 deposit that is currently equity in our current house.

gb12345

Not sure whether any of the details have changed, but there is some info here http://www.rightmove.co.uk/firstbuy/.

Chrisandsarahs

gb12345 wrote: »

Not sure whether any of the details have changed, but there is some info here .

Hi.
Thanks for the reply. This is for first time buyers only. We already own a house and I think the new scheme is called "New Build" It only started yesterday but we are in the process of deciding if we should go for it or not.

CashStrappedPrincess

I don't know if this will help

https://www.gov.uk/affordable-home-ownership-schemes/newbuy

gb12345

Chrisandsarahs wrote: »

Hi.
Thanks for the reply. This is for first time buyers only. We already own a house and I think the new scheme is called "New Build" It only started yesterday but we are in the process of deciding if we should go for it or not.

I think it is actually called "New Buy" and the following claims to be the official site for it http://www.newbuy.org.uk/

But it doesn't talk about 20%, just being able to get a 90 - 95% mortgage.

ChopperST

We are thinking of doing this with David Wilson. You need to raise a 5% deposit on the property and you can then borrow another 20% interest free for five years from the government. This then means you can get a 75% LTV mortgage. It is applicable to homes up to £500k that is to be your main residence.

After 5 years the loan becomes interest payable (exactly what is unclear). You can repay the loan at any time or on sale of the property.

Hope this helps.

edit - The link posted above is indeed the official website. It is so poorly executed I also thought it was an unofficial spin off / scam. The details are very poorly explained, we got more from the mortgage adviser from David Wilson, suggest you speak to your builder too.

Chrisandsarahs

ChopperST wrote: »

We are thinking of doing this with David Wilson. You need to raise a 5% deposit on the property and you can then borrow another 20% interest free for five years from the government. This then means you can get a 75% LTV mortgage. It is applicable to homes up to £500k that is to be your main residence.

After 5 years the loan becomes interest payable (exactly what is unclear). You can repay the loan at any time or on sale of the property.

Hope this helps.

edit - The link posted above is indeed the official website. It is so poorly executed I also thought it was an unofficial spin off / scam. The details are very poorly explained, we got more from the mortgage adviser from David Wilson, suggest you speak to your builder too.

Hi,
Thanks for the great reply. We are looking at David Wilson as well! We have the 5%, as well as approx £30,000 equity in our current house. I will pop into David Wilson on my way home I think.

Cheers

ChopperST

Good luck.