Chance to pay off Government Loan of Government Loan Arrangement

Smoog

Last year I was a first time buyer and purchased a new build through a scheme arranged by the building developers and the government. I'm sure you've heard of it but I can't think of the name. Anyway, the deal was that I get a mortgage for 90% for the property and the Government would give me a loan for the other 10% and I pay that back within 10 years.

The whole arrangement suited me fine and been paying it off in my stride. Anyway last week, a letter came through the door from the building developer, saying that if I were to pay the full amount of the government loan off before the 30th August, they'd give me back 15%. So instead of £17k, I'd pay only £14k.

As enticing as this sounds, there's no way a first time buyer like myself could rack up this sum in such a small amount of time. Is there any way I could take advantage of this deal or am I going to just have to let it go?

I just thought I'd ask as I'm not completely aware of what other financial arrangements are out there

kingstreet

We can't really tell you how you could get hold of £14k.

Loan?

Parents?

It's called "shared equity" by the way.

brit1234

Was it the Newbuy scheme by any chance? If it is that is interesting as both the builder and the tax payer funds are at risk if it goes wrong. Under Help to buy it is only tax payers funds at risk with the builder getting off scott free.

If this is Newbuy its risk mitigation by the builders and highlights a perceived risk to tax payers money known to the builders with Help to Buy.

kingstreet

brit1234 wrote: »

Was it the Newbuy scheme by any chance?

If it was, there is no loan.

NewBuy is the 95% mortgage with the guarantee on which HTB-MG will be based from January 2014.

This sounds like a variation on FirstBuy, shared equity backed by the builder, not just HMG.