Clearing Help To Buy Equity Loan

as400

Borrowed the 20% =£55K

Am I OK to clear it in total by paying £5,500 each year for 10 years?...10% is the minimum payment right?

Has it got to be a 10 or 20% payment each time?...or can it be say a 15% payment?

and as long as the house isn't sold its just that £55K that needs paying....not 20% value of the house?

Have I understood that correctly?

(obviously after the 5 years an interest payment is due but this question is just about clearing the equity loan)

Thanks

[Deleted User]

It's based on the value of your house at the time.

Any payment must be a minimum of 10% of your home's value - not 10% of the loan.

https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-Feb-2018-FINAL.pdf

kingstreet

You can repay the loan in no more than two lump sum payments.

100%, or two lots of 50%.

Based on property value at time, not original loan.

cashbackproblems

What a con so glad I didn't get roped into schemes like these.

as400

kingstreet wrote: »

You can repay the loan in no more than two lump sum payments.

100%, or two lots of 50%.

Based on property value at time, not original loan.

Really?...I keep reading about 10% or 20%....I don't see 50 mentioned?

"Borrowers can choose to repay the equity loan at any time, without penalty. You can pay back either 10% or 20% of the total amount, so long as the loan is worth at least 10% of the value of your home. "

kingstreet

20% of the property value = 100% of the loan.

10% of the property value = 50% of the loan.

You seemed to be having a problem with 10%, 20% so I thought 50% and 100% might help.

amnblog

You get to live in a spanking new property you could not otherwise finance.

You get 25% deposit mortgage rates when you only put 5% in.

Where is the con?