Help to Buy scheme question

Zahc01

Hi,

I am hoping someone will be able to give me a definitive answer regarding paying off the equity loan provided by the government as part of the 'Help to Buy' scheme.

I currently have a 5% deposit (£10k) and have been approved for the scheme, with the government providing a further 20% of the house in the form of an equity loan (this will be approximately £40k). I anticipate I will be able to re-pay this in one full amount within a year, from inheritance. However, there is conflicting information about whether this will be possible:

The 'Help to Buy' section on the 'Mortgage Schemes' page of this website, clearly states under the heading 'When do I pay the loan back?': 'It must be repaid when the house is sold ......... You can pay the loan off earlier, but only if you're clearing the mortgage at the same time.'


However, the official government website describing the scheme states: 'You can also pay back some of your equity loan without selling your home. You can pay back either 10% or 20% or the total amount, so long as the loan is worth at least 10% of the value of your home.'

So, am I able to pay off the full amount at any point, or am I only able to pay off the loan if I sell the house / clear off the mortgage at the same time? Or am I missing something here?

Any help will be greatly appreciated!
Charles

Thrugelmir

Nothing to stop you reducing your mortgage. Then remortgaging the property in a few years time to clear the equity loan. Would save you interest.