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HTB advise
Hitchy7
Posts: 31 Forumite
Can anyone shed any light for me?
We are submitting our full application on Tuesday when the broker comes out and have a dip in place.
Anyway, we will have to have an equity loan of £45k and hoped to pay a lump of £20k at the end of year 5..
From what I've read I can only pay it back when I sell the house (which I have no plains to do until we downsize when kids are older if needs be) ..
I hoped to pay £20k off in year 5 and then look to mortgage the remainder if at all possible?
Have I misunderstood??
We are submitting our full application on Tuesday when the broker comes out and have a dip in place.
Anyway, we will have to have an equity loan of £45k and hoped to pay a lump of £20k at the end of year 5..
From what I've read I can only pay it back when I sell the house (which I have no plains to do until we downsize when kids are older if needs be) ..
I hoped to pay £20k off in year 5 and then look to mortgage the remainder if at all possible?
Have I misunderstood??
0
Comments
-
Yes. You have misunderstood.
The equity loan can be repaid in upto two chunks of 10% each, whenever you like. The value of the repayment will depend on the value of the property at the time.
Look here;-
http://www.myfirsthome.org.uk/content/1/124/staircasing.htmlI am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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