Help to buy loan equity scheme question

Heisenberg87_2

First time buyer and was hoping someone could break down the Help to buy equity loan scheme. I have been looking a flats with my parent but thought whilst the offer is there would it be best to use this to buy a house which is our aim. We have to move out of parents home in a bout 6 months which means we can have a deposit of roughly £20,000 inc legal fee's etc...

If we were to borrow the following from the government could anyone work out what the repayments would be? I know it hard to calculate the repayments from a lender but if anyone can give us a ball park figure that would be great.

Looking at a £240,000 property

Put down a 5% deposit of £12,000 ( could go up to 8% but not too sure if the rate would change that much?)

Borrow 20% from Help to Buy = £48,000

That leaved us borrowing £180,000 from the Government (Have had DIP for this amount from Halifax when flocking at flats)

Here is where it gets tricky for me;

''In the sixth year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using the Retail Prices Index plus 1%''

How much over a 25 year period would that be?

kingstreet

First of all, are you buying a newbuild?

http://www.helptobuy.org.uk/docs/default-source/default-document-library/help-to-buy-equity-loan-buyers-guide.pdf?sfvrsn=4

See page 14 for fee example.

amnblog

If you want to see our one minute video on the Help to Buy Equity Loan Scheme which uses a £200,000 purchase as an example - just PM me and I will send you a link.