Help to Buy - Equity Loan Repayment Schedule Calculator?

ChrisHill

Good Morning All,

I am awaiting a call for the release of a new build house. My Wife and I are going to enter into a mortgage with the additional Help to Buy Equity Loan.

I have downloaded the Mortgage Schedule Calculator (forums.moneysavingexpert.com/showthread.php?t=1157173) to get a handle on effective payments, interest, savings etc. concerning my mortgage.

I was wondering, is there a similar spreadsheet to calculate the Help to Buy Equity Loan? Specifically one factoring in the incrementing interest rate per annum?

This Help to Buy equity loan is interest free for the first five years, after which you will be charged a fee calculated at 1.75% of the equity loan plus 1%. The fee rate slowly increases year on year in line with the Retail Price Index. These repayments will sit alongside your mortgage repayments.

My intention is to make the most of the 5 years interest free period to put as much of a dent in the loan as possible.

Many many thanks in advance,

Kind Regards,

Chris Hill

alex_163163

http://www.myfirsthome.org.uk/


This is quite a useful website for those who have a HTB loan already, so hopefully will help explain things to you about how you can pay the HTB loan off.
When you say ' make the most of the interest free period by putting as much as a dent in the loan as possible' - do you mean the HTB loan or your mortgage?
If the former, its not as easy as paying off £100 per month say on the HTB. Have a look at the website I posted the link to, and it explains about how you can staircase the HTB loan to pay it off.

ChrisHill

Many thanks Alex,

I am referring to the Help to Buy Equity Loan. I will have a look!

alex_163163

Also, when you apply for the HTB equity loan, if approved they sent you a 'worked' example of how much you will be paying in interest after the 5 year initial period.

kingstreet

It's in the HTB Buyer's Guide.

Assuming 5% inflation it's as follows from year six;-

1.75%
1.86%
1.97%
2.08%
2.21% and so on.

The loan capital can be repaid in one (eg 20%) chunk or two equal (eg 10% x 2) chunks.

Asatari

Multiply your HTB balance by 1.75% for the annual payment in year 1, and increase that £ amount by whatever you think inflation will be for each year.