Miller homes Miway scheme payback

Kayleigh141

Hello,

Around 5-7 years ago, Miller homes were big on their Miway scheme, where they would offer 25% of the house price to be covered by them, with you paying it back to them after 10 years. They also had one where you had to pay them back after 5 years.

Has anyone came across having to pay this back yet? I have just under 3 years to go and I'm wondering what my options will be, I.e monthly instalments or overall payback? Can't seem to see any contract with details stored.

I know persimmons had a similar deal and they are offering monthly installments for payback

carefullycautious

Have I got this right, you have purchased a house with a loan from the builder and you don't know the details of when you have to pay it back


:eek:


Speechless!!!

poppy10_2

Kayleigh141 wrote: »

they would offer 25% of the house price to be covered by them, with you paying it back to them after 10 years.

Remember you have to pay back 25% of the open market value of the property today, not at the time you bought it. So if your house has gone up in value, the amount you owe will be more than you originally borrowed.

I can't find any example T&Cs for MiWay but you should have it among the paperwork from when you bought the house - if not contact Miller Homes now as you really need to start planning how you are going to pay back that lump sum in three years.

csgohan4

carefullycautious wrote: »

Have I got this right, you have purchased a house with a loan from the builder and you don't know the details of when you have to pay it back


:eek:


Speechless!!!

Ditto......

Kayleigh141

csgohan4 wrote: »

Ditto......

Incorrect. As other builders are now offering alternatives based on their original advise, I am looking for advise on what millers are actually offering encase anyone else has paid theirs back as of yet.

Kayleigh141

poppy10 wrote: »

Remember you have to pay back 25% of the open market value of the property today, not at the time you bought it. So if your house has gone up in value, the amount you owe will be more than you originally borrowed.

I can't find any example T&Cs for MiWay but you should have it among the paperwork from when you bought the house - if not contact Miller Homes now as you really need to start planning how you are going to pay back that lump sum in three years.

Thanks, the properly has went down in value (guess it's good for the payback but not if I ever want to sell up )

Pomegranate88

Hi Kayleigh,

I have a similar deal with Bellway, ending in four years. Instead of saving, I'm overpaying the mortgage and will get a further advance when the time comes, to cover the cost.

With mine, you both come to an agreement on what the value of the property is. This includes estate agents and sold prices (these can be found on zoopla).

Values where I live are rising so it may be worth keeping an eye out on this and paying it back sooner e.g. 25% of £100k being £25k, but if the value rises to £150k, you'll be paying an additional £12.5k.

The only time I have heard of people paying back in instalments is prior to the deadline - this is called stair casing. I decided that for me personally, it wasn't beneficial, as if I was to go through a solicitor, I would have to pay solicitor fees each time. I know that Bellway told me I could apply for an extension after the 10 years, but interest would be added and I doubt it would be as low as the mortgage as you are at their mercy.

I think the best thing to do as start saving for this asap in one way or another as with shared equity there is a risk that if you don't pay it back within the agreed timescale, your home is at risk.