Government mortgage schemes

kingstreet

MelC999 wrote: »

If my husband and I use the help to buy scheme with the 20% equity loan, and our financial situation improves over the first 5 years (through promotions at work, etc) of the interest free period. Would we be allowed after those 5 years to pay off the equity loan in full? Either from our funds or through a remortgage to include the equity loan if we can afford it?

Yes. You will pay back 20% of the value of the property at the time, whatever it is worth, if you take a 20% loan at the outset.

kingstreet

Yates78 wrote: »

We plan on staircasing either 10 or 20% once we have enough equity to do so after year 5

You can repay half the equity loan, or all the equity loan.

Those are the two options.

http://www.myfirsthome.org.uk/

Jodes01

Looking for your help. Is it possible to switch mortgages whilst on a help to buy equity scheme? I'm near the end of my fixed rate period and want to shop around for a better deal. Is that possible or am I tied in until the loan part has been paid off?

Any help much appreciated.

kingstreet

You need to contact HOP and obtain permission. You will not be able to borrow more;-

http://www.myfirsthome.org.uk/

Once you have the pack from them, you need to find a lender willing to accept a remortgage with a second charge, remaining in place.

Jodes01

Thanks. Much appreciated.

Kw10

On a joint income of around £37,000pa is a £231,000 house going to be realistically possible/do-able mortgage and money wise on the equity loan scheme? First time buyer so stressing that I don't know enough any advice/help?

FredUK

HI ! :hello:

I'm struggling to buy my first flat but i have more then 5% deport it. what is the max you can put in ? no where on the .gov site does it say.

Many thanks in advance

:beer:

kingstreet

FredUK wrote: »

HI ! :hello:

I'm struggling to buy my first flat but i have more then 5% deport it. what is the max you can put in ? no where on the .gov site does it say.

Many thanks in advance

:beer:

Newbuild, or second hand?

FredUK

both .Im looking at both options.

kingstreet

HTB - Mortgage Guarantee is for second hand properties and for those with only 5% - 10% deposit. If you have more deposit, you'll be better off on a standard 90% product.

HTB - Equity Loan is for newbuilds only. You can borrow 10% or 20% form the Government to increase your deposit, but must borrow at lest 25% on the mortgage. It's interest free for five years, with payments starting in year six. When you repay, you repay based on the value of the property at that time, so you will pay back more if the property value has increased.

HTB - EL guide;-

http://www.homesandcommunities.co.uk/sites/default/files/our-work/help_to_buy_buyers_guide_sept_2013.pdf