Is selling a help to buy home in the first 5 years pay off the equity loan?

sd183

Hi all.

If I were to sell a help to buy property in the first 5 years when the government equity loan is still interest free, would I be making a sensible decision?

I feel help to buy is a good foothold but I am concerned about the implications of the long term equity loan interest.

In my calculations model I can't find any reason why I wouldn't just sell the property in the first 5 years and repay the loan (excluding obvious examples like negative equity for example)?

Has anyone done something similar?

Thanks in advance for your help!

Pixie5740

Why go to the hassle of selling and moving somewhere else? You could just remortgage the property you've already got to release enough equity to repay HTB. I suppose you'd need to weigh up whether it works out cheaper to remortgage or pay the interest on the HTB EL though.

kingstreet

Sd183 wrote: »

If I were to sell a help to buy property in the first 5 years when the government equity loan is still interest free, would I be making a sensible decision?

Too many variables for anyone other than yourself to be able to answer.

What's the property value and has it increased or reduced affecting the redemption figure for the loan?

Where are you going to live?

Fees paid for your purchase plus fees for your sale and new purchase if any?

SDLT?

If you retain the HTB EL into year six, the fee payments are 1.75% per annum, lower than many mortgage rates. How will this compare to property values at that time as that will be the opportunity cost of paying the fees?

All questions to ask yourself.