Help to buy scheme

woody5

If buying a new build, even if we have a large deposit is it worth going with the government scheme or not as we would have the money to pay the government loan at the end of five years.
Or should we just put a larger deposit down.
Hope this makes sense.

Babybell86

We are using help to buy as it was the only way we could get a house in our chosen area. I think as long as you have an exit strategy then I can work out. We are planning on overpaying our mortgage for th next 5 years to gain enough equity to remortgage and swallow up the equity loan after 5 years. Our mortgage for our house is £300 a month less than our mortgage for our flat so it should be doable to overpay quite a bit.
We felt it was a good idea but are aware that after 5 years if we haven't built up enough equity then it could get expensive.

Good luck

Jon_B_2

Babybell86 wrote: »

We are using help to buy as it was the only way we could get a house in our chosen area. I think as long as you have an exit strategy then I can work out. We are planning on overpaying our mortgage for th next 5 years to gain enough equity to remortgage and swallow up the equity loan after 5 years. Our mortgage for our house is £300 a month less than our mortgage for our flat so it should be doable to overpay quite a bit.
We felt it was a good idea but are aware that after 5 years if we haven't built up enough equity then it could get expensive.

Good luck

It could be expensive anyway. For every £10,000 that your house increases in price, the government get £2,000.

For me, the only worry post year 5 is whether there will be remortgages available maintaining the equity loan. Our plan is to absorb the equity loan at year 5, but who knows what may happen.