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Government mortgage help scheme confusion
K789
Posts: 22 Forumite
Could anyone please clarify the slight confusion I have with the government mortgage help scheme?
I was reading up on it and it said: If I can find my 5% deposit, then the government will loan me a further 20% towards my deposit.
My confusion is how I would have to repay their loan?
Would I have to start making monthly repayments straight away along with my first monthly mortgage payment?
Would the governments 20% loan be like a normal personal l loan that would run over 5-10 years (if so that could make my monthly bills very expensive). Or could I spread the loan repayments over the 25 year mortgage term?
Just slightly confused, can someone please break this down for me in simple terms.
Thank you
I was reading up on it and it said: If I can find my 5% deposit, then the government will loan me a further 20% towards my deposit.
My confusion is how I would have to repay their loan?
Would I have to start making monthly repayments straight away along with my first monthly mortgage payment?
Would the governments 20% loan be like a normal personal l loan that would run over 5-10 years (if so that could make my monthly bills very expensive). Or could I spread the loan repayments over the 25 year mortgage term?
Just slightly confused, can someone please break this down for me in simple terms.
Thank you
0
Comments
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Ok so generally speaking...
You pay £1 a month for the first 5 years. After that you pay a small amount every month. Usually 1.75% interest per annum
The loan becomes repayable after 25 years or on sale of your house whichever is first0 -
Are you buying a newbuild?Could anyone please clarify the slight confusion I have with the government mortgage help scheme?
I was reading up on it and it said: If I can find my 5% deposit, then the government will loan me a further 20% towards my deposit.
My confusion is how I would have to repay their loan?
Would I have to start making monthly repayments straight away along with my first monthly mortgage payment?
Would the governments 20% loan be like a normal personal l loan that would run over 5-10 years (if so that could make my monthly bills very expensive). Or could I spread the loan repayments over the 25 year mortgage term?
Just slightly confused, can someone please break this down for me in simple terms.
Thank youI 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
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