Help To Buy Scheme Understanding

AlexYoung_2

Hi,

I've been looking into this scheme (Both to be honest) and just need some help understanding it a bit further.

We are first time buyers and we have 16K Deposit so far, the problem we have is that fair enough the scheme does 5 years interest free and you have to pay interest on the 6th year.

• What ways can you recommend to pay off the money you owe to the government?
• How much are we talking just some examples, i don't want to know percentages i just want rough examples of money i would be looking at
• Me and my partner are not in a major rush to move out as our target deposit has been 20K and by February we will have that so is there a benefit to doing HTB rather than the normal way of saving a deposit and get a normal mortgage

If someone can clear up those as we have emailed mortgage advisor's and still waiting for a reply so was hoping the forum might get a more honest answer.

Thanks

Alex

ethank

Are you going for a new build or a pre-owned home?

AlexYoung_2

That's one of the things i'm not sure as some nice new builds coming up at the moment around my area so probably would be new.

ethank

There are two different help to buy schemes! One for new and one for pre owned. More info at https://www.gov.uk/affordable-home-ownership-schemes/overview

AlexYoung_2

I know the website but i'm looking for some answers to my questions to above as can't find it on the site.

kingstreet

No-one can recommend ways to pay off the equity loan. If you get a 20% equity loan, when you repay, you repay 20% of the property value, at the time, not the original £ amount you borrowed.

Repayment will be;-

on sale of property
at end of mortgage term from your own resources
by one, or two, single repayments of half or all the loan when you choose.

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