Help To Buy equity loan Wales

NiaS90

I am looking in to applying for the Help to Buy equity Loan Wales, I’m a bit apprehensive as I don’t like the thought of the government owning 20% of my property. There is also the possibility of running the risk of negative equity. If I go ahead and take out the HTB my plan would be to have the loan for the 5 years interest/fee free then look to re mortgage and pay off the HTB loan before the fees are applied on the 6th year. My worry is I might not be accepted for a re mortgage if the house prices go up each year.

Has anyone taken out the Help to Buy Wales loan? If so is there any advice you could give me? Would you recommend taking it out? Has it been an easy process? Has anyone paid off part or all of the loan and was it easy process to do so?

Thanks

csgohan4

if house prices go up and your time for renewal is due, that is a good thing, means your loan to value will be lower and potentially get better rates.


You may repay more than you borrowed as it is calculated at the how much your house is worth when you come to repay it.


http://helptobuywales.co.uk/how-it-works/?lang=en

NiaS90

Thank you for the reply.

This was my issue if house prices go up i will be paying back more to the HTB. I was looking to remortgage for a higher amount after the 5 years to be able to pay the loan off.
I think i understand what your saying now if the LTV is lower i potentially be accepted for more to be able to pay off the HTB loans.

kingstreet

If the value increases, 80% of the growth belongs to you, so the increase in the redemption for the HTB loan is still below your growth.

NiaS90

Would i be able to ask your opinion on the HTB loans? Do you think they are a good idea?

csgohan4

Question is, are they good for you. IF you can afford it, don't use them as they are a loan and you may need to pay back more than you borrowed otherwise you pay interest on that too.

buel10

If I may jump in on this thread - is the fact that HTB is for new build homes only, a negative?

ANDR£W

Personally I think nearly all properties especially here in the south east are overpriced.Seems the builders are adding the 20% help from the gov onto the asking price and then another 20% because they can.We went to view a 3 bedroom townhouse recently,Newbuild priced at 540k absolutely ridicilous amount of money & not the sort of debt I would like around my neck at the moment,But these are just my opinions others will differ.

NiaS90

Thank you for all your response's. We've gone without the HTB loan to many negative points for us. Offer accepted on a property and hoping to complete end of June! :j