Help To Buy Equity Loans - Will They Lend Me 20%?

rosieraspberry

I am interested in getting a Help To Buy Equity Loan where you borrow up to 20% of the property value and don't pay any interest for 5 years.
I am saving towards a house at the minute. By the time I come to move I am likely to have around 15-20% of the property value saved up towards my deposit.
If I apply for a HTB equity loan will they still look to lend me the full 20% even if I already have 20% of the property value saved up or does that not matter?
Also the Help To Buy equity loan says you don't pay interest for 5 years, do you pay anything off the capital during these 5 years?

crystalpinks

They will (as long as affordability is ok) I have a 80k deposit and am also using 20% H2B

rosieraspberry

Great, thank you. I thought that'd be how it works. It makes sense not to discourage saving more towards a deposit!

kingstreet

You pay only a £1 a month admin fee during the first five years.

Capital is repaid;-

on sale
voluntarily in upto one 20% chunk, or two chunks of 10% of property value each
if you repay the mortgage, the loan has to be repaid as well
at the end of the 25 year term, or mortgage term if shorter by whatever means possible.