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help to buy
myright
Posts: 689 Forumite
Hi guys
In regards to help to buy scheme I have some questions.
A) are they only available on new builds?
could I put a higher deposit than 5 percent? And would the govt still give us a loan for 20 percent?
C) is government loan interest free? When does it need to be paid off.
In regards to help to buy scheme I have some questions.
A) are they only available on new builds?
could I put a higher deposit than 5 percent? And would the govt still give us a loan for 20 percent?C) is government loan interest free? When does it need to be paid off.
0
Comments
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Hi
1) help to buy equity loan new builds only
2) I believe not
3) paid off after 25 years I believe. You start to pay the govt loan back after year 50 -
You can use HTB - Equity Loan on newbuild only. HTB - Mortgage Guarantee you can use for both newbuild and second-hand, but there is no loan with the latter.
You can put down as much deposit as you want on HTB - EL as long as your mortgage is at least 25% of the purchase price of the property and your deposit a minimum of 5%.
The loan is interest-free for five years. After that "fees" start from 1.75% and increase each year. These are like interest and none of the loan capital is repaid. This is done by upto two voluntary repayments earlier, at the end of the term, or on earlier sale of property.
http://www.homesandcommunities.co.uk/sites/default/files/our-work/help_to_buy_buyers_guide_sept_2013.pdfI 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 -
Thanks guys. So if my deposit is 15 percent. Would the EL be reduced to what I could get. Instead of 20 percent would I get only 10 percent?
Also could the equity loan paid in full of after 5 years without getting additional interest?0 -
No, you can have 10% or 20% (your choice) regardless of the level of deposit as long as you borrow at least 25% and put down at least 5% deposit.
The equity loan can be repaid any time you like, but it will be based on the property value at the time of repayment. If you get 20% of the purchase price at the outset, you repay 20% of the value of the property later.
If the value has increased, you pay back more than you borrowed. If the property value has fallen, you repay less than you borrowed.I 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 -
I see. Thanks for that. Do you think new build houses are a better investment for residential purposes?0
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