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Help to buy loan repayment
biged670
Posts: 408 Forumite
Hi all,
I've been reading up on some information regarding the help to buy equity loan scheme. I've managed to find information on the interest payable starting at the 6th year etc... My question is though, when is the loan due to be repaid?
I know you can make 10% payments towards the loan amount if/when possible, but is there an actual date from when you are expected to start repaying the loan?
Cheers
I've been reading up on some information regarding the help to buy equity loan scheme. I've managed to find information on the interest payable starting at the 6th year etc... My question is though, when is the loan due to be repaid?
I know you can make 10% payments towards the loan amount if/when possible, but is there an actual date from when you are expected to start repaying the loan?
Cheers
0
Comments
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The full loan itself is repayable after 25 years or on the sale of the property if earlier.0
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You can repay in chunks of 10% of the property value, not 10% of the loan.
If you have a 20% equity loan, you can therefore pay it off in one or two payments only.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
It must also be repaid on redemption of the first charge over the property.The full loan itself is repayable after 25 years or on the sale of the property if earlier.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Thanks all... bit of a generic question but are many people planning to repay the loans or are most just settling for 80% equity in the property until they sell?0
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HTB is a scam IMHO, you repay more than you ever will get, hence the government makes a big profit, as house prices generally go up"It is prudent when shopping for something important, not to limit yourself to Pound land/Estate Agents"
G_M/ Bowlhead99 RIP0 -
Most people are probably planning to remortgage and increase their loan by the 20% equity loan. Therefore increasing the mortgage term by a LOOONG time0
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Not if you keep the length of the mortgage the same? You essentially avoid bank interest charges for the first 5 years on 20% of the overall loan.Most people are probably planning to remortgage and increase their loan by the 20% equity loan. Therefore increasing the mortgage term by a LOOONG time0 -
also there is fees to pay each time, and also you need to use a solicitorDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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People wrongly think that the help to buy is bad in my opinion. It's not bad at all... I mean where else could you get 20 percent of the purchase price of a property for free for five years (considering that's on average 50 or 60 thousand). Nowhere!
Granted you pay rent on it after the 5 years but, 60/70 pounds a month - that's what people probably waste on gym memberships a month that they do not use.
People cry that the Government are entitled to any uplift in value of the house but at the end of the day if you buy for £300,000 and it goes up to £350,000.00 after 10 years.
You have still made £40,000.00. I don't see what the issue is? (afterall 20 pecent of the property was not yours) you wouldn't have been able to buy the house in the first place without the help to buy.0 -
Not necessarily.
I have done figures myself and on a 30 year term time you can pay off enough equity after 10 years easily not accounting for any potential increase in value (which would also increase your equity) to re-pay the help to buy loan and then have around the same or less mortgage at the start.
Nothing bad about that... at the time of the re-mortgage you just for a few less years to make up for the time wasted on the help to buy.0
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