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Help To Buy Equity Loan Repayment
Xyraxel
Posts: 2 Newbie
Hi,
I am a bit confused on how HTB equity loan repayments work out.
Would I have to pay the loan in a lumpsump of 10% of the house value or 10% of the loan value taken from the government.
Also is it necessary to take out 10% or 20% equity loan or would I be able to take out a 15% equity loan and put down 10% of my own deposit.
Regards,
I am a bit confused on how HTB equity loan repayments work out.
Would I have to pay the loan in a lumpsump of 10% of the house value or 10% of the loan value taken from the government.
Also is it necessary to take out 10% or 20% equity loan or would I be able to take out a 15% equity loan and put down 10% of my own deposit.
Regards,
0
Comments
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I'm pretty sure you can only do 10% or 20% and not 15%. For the first 5 years the loan is interest free, then in year 6 you pay a monthly interest free. You can chose to pay back the full loan at any time, but only in 10% incrediments. The 10% would then be based on the value of your property when selling. So if the price has risen for example, you will pay back more than you originally borrowed.0
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You can use any percentage of equity loan up to 20% (or 40% in London). I've seen people getting HTB approval with 27% Equity Loan.0
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