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H2B Loan paying back within 5 years?
Therooster100
Posts: 42 Forumite
If I wanted to pay back the H2B loan within 5 years would I have to pay any extras?
Say the house has gone up in price would this affect the amount due or would it just be the 20% I borrowed when I bought the house?
Say the house has gone up in price would this affect the amount due or would it just be the 20% I borrowed when I bought the house?
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Comments
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Yes, it is an equity loan so it is based on 20% of the value of the house. If the value has risen since you took out the equity loan, you would pay back more.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.0 -
Link to Target, the post-sales HTB Agent here;-oliveredmunds wrote: »If I wanted to pay back the H2B loan within 5 years would I have to pay any extras?
Say the house has gone up in price would this affect the amount due or would it just be the 20% I borrowed when I bought the house?
https://www.myfirsthome.org.uk/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 -
Thank you both very much. I wasn't sure if this was the case within 5 years I knew it was after 5 but that answers my question!0
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In danger of sounding like crashytime, these should be called helptosell really. The sole purpose of these loans was to help the house builders out, it ensures they can sell over priced new build houses. The same really applies to part buy schemes.
If you house purchases were restricted to normal affordability criteria then there would be no option but for house prices to settle to a more rational level of affordability.0 -
They should as they do inflate the house prices, but the developer we are buying from is only a small one & is in line with the local house prices before they started construction so it didn't inflate these that much.0
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