Help to Buy Equity Loans guide discussion

chrisam30

Hi all,
Wondering if someone would be able to help me please.
I just wanted to confirm when the deadline will be for applications for the Current Help to Buy Equity loan scheme that ends in March 2021? 

i.e does the application have to be submitted before March 2021 (and can be ongoing post March 2021) or do you have to complete your house purchase and have moved in before March 2021?

Thanks,
Chris

mtc90

I have a question regarding the new Help to buy equity loan starting next year. My partner and I are hoping to use the scheme to buy our first home together, he is a first time buyer and has never owned a property before however I have owned a property but have since sold it and am no longer a home owner. We will be applying for a Joint mortgage to buy our home but are we/he eligible for the new scheme? Can he apply for it solely? or will he be unable to use it as he is buying a house with me (an ex homeowner)? Thank you in advance.

SJC91

mtc90 said:

I have a question regarding the new Help to buy equity loan starting next year. My partner and I are hoping to use the scheme to buy our first home together, he is a first time buyer and has never owned a property before however I have owned a property but have since sold it and am no longer a home owner. We will be applying for a Joint mortgage to buy our home but are we/he eligible for the new scheme? Can he apply for it solely? or will he be unable to use it as he is buying a house with me (an ex homeowner)? Thank you in advance.

I am also in a similar position to mtc90, except were are planning to sell our home using one of the housing developers schemes, in order to then purchase their new build home. My partner is a first time buyer, I am not.

Secondly, is there any information as to whether the scheme will be extended past March 2021 due to the current situation?

Any help would be greatly appreciated

Sensory

The current HTB scheme allows ex-homeowners to apply. "If you have an existing home or property you must ensure that this is sold on or before the completion date of your purchase of your Help to Buy property."

This scheme runs to March 2021. From April 2021 to March 2023, there will be a new HTB scheme strictly for first-time buyers only.

grumiofoundation

Albert121 said:

Hi all, this is a little complicated sorry in advance.

Firstly thanks for the guide but I think it has some holes:

We are in year 6 of our H2B having purchased our home in 2013, the house value has gone up through the roof increasing by over £100k

Logically it would make sense to repay Target through the normal repayment method as that is repaying the £44k we borrowed, and not the £70k that we would need to pay if we paid in full.

Is that right? It isnt covered in the guide, it talks about selling or repaying in full, are those the only options?

So if I make capital repayments and not interest only repayments am I repaying the initial borrowing amount no or the 20% current value of the house yes?

Thanks for the advice already
Ian

You have to pay loan back after 25 years/selling but you can pay off the loan before this. The amount you pay back is determined by the current value of your house, not the amount you borrowed.

"You can pay back part or all of your loan at any time. The smallest repayment you can make is 10% of the market value of your home." (From the gov.uk website) 

Lou789

Hi everyone, we've put a reservation down on a new build to be completed April/May/June 2021. We were planning to use the 10% help to buy equity loan to get an 80% mortgage. We have been told today that the completion date would fall under the new help to buy scheme for which our advisor does not know the details of... I was just wondering if anyone else has had this experience, knew how we could find out a bit more information on the new scheme or how/when to apply for it? 
Thanks! 

Puddi

Good morning. Myself and my partner have recently bought our second home using Help to Buy. Contracts are about to be exchanged. The new house is estimated to be completed in December 2020. I have recently read with the existing help to buy that despite it ending in March 2021, that this is only the date for legal completion and the actual house has to have been built by December 31st 2020 to still
be able to get help to buy. This is our second home so cannot use the new scheme either.
Does anyone  know anything about this? Many thanks in advance. 

sb_232

My partner and I have exchanged contracts on a New build property Back in January, which was due to complete in November this year. We have been informed due to COVID that there is a delay of 6 months so new completion now April 2021. We had our applications all accepted for the mortgage including HTB Equity Loan. Of course the scheme changes 31st March 2021 and the property is beyond the regional price cap meaning we would no longer be eligible so we are now in an exceptionally difficult situation given that our deposit of £14k is now paid and our solicitor says there’s not really anything we can do which is really concerning. I’ve emailed our local MP who contacted the housing minister who advises there are no plans to extend the scheme. This is even more disappointing given that Scotland have extended the scheme. I am at a loss of what to do now and am obviously devastated at the prospect of losing £14000. Would be grateful for any advice! 

My partner has started a petition asking the government to extend - please sign below!! 

https://petition.parliament.uk/petitions/328967/sponsors/new?token=2ONjcrqT-XlNo6DRZomY

Dinpraad

@sb_232 I understand your frustration.  The whole Covid has just thrown a spanner in the works. I also in a predicament as I am due to reserve only to be told houses have to be completed this year to be able to use help to buy without the new regional caps

Rony

Hi,

I am about to buy a property using Help to Buy Equity Loan and I have a few questions when it comes to repayment of the loan:

1) How much do all the ancillary fees total up to roughly when stair-casing? I understand there is an admin fee, but what about the RICs valuation report, conveyancing costs etc? I also understand that if you are doing a partial payment, you don't need a solicitor, so that's a pro. I.e. Can someone give a full rough costing of stair casing and full repayment?

2) Say I do a RICs valuation report and the value comes out to be much higher than I expected, can I back out from the repayment? I am guessing that I can do this, just confirming.

3) Currently going through the conveyancing process for my current place, and the provisions of all the back up and bank statements is quite a big task (I have several bank accounts with transfers going between them as well as gifts - in total having to provide 8+ banks worth of statements). When it comes to staircasing/paying off in full the help to buy equity loan, are the requirement as harsh as a normal house purchase conveyancing? I.e. Do i have to provide bank statements going back 3 months yet again and prove source of funds? If so, I might have to start stream-lining my bank accounts haha.

Many thanks,