Help to Buy help!

nicx1

Hi All,

I'm not sure if I'm posting this in the correct forum, but here goes.

We've reserved a new build property through help to buy and everything seems good but I'm a bit confused about the repayment part and can't seem to find a definite answer anywhere!

I understand about the 5 year interest free period and all that, our plan will be to remortgage at the end of the 5 year period to include the 20% (unless we come in to a lot of money before then!). The part that I'm confused about is that amount after 5 years that we add onto our mortgage. My understanding was that if the property goes up in value, the government will only benefit from that if we sell the house. We don't intend to sell, so if we remortgage after 5 years to include this loan will the amount we need to pay back still remain as the original loan?

The house price is £350k, 5% deposit of £17.5k and we're borrowing 20%, £70k, through HTB. If we remortgage after 5 years, will we still owe £70k or would it be 20% of the value at that time?

I can't seem to find an answer to this and mortgage brokers haven't been very clear! Wouldn't want to get ourselves into a situation where we're forced to sell or pay interest as we couldn't afford the remortgage!

Any advice would be appreciated!

Thanks

Wongus

nicx1 wrote: »

Hi All,

I'm not sure if I'm posting this in the correct forum, but here goes.

We've reserved a new build property through help to buy and everything seems good but I'm a bit confused about the repayment part and can't seem to find a definite answer anywhere!

I understand about the 5 year interest free period and all that, our plan will be to remortgage at the end of the 5 year period to include the 20% (unless we come in to a lot of money before then!). The part that I'm confused about is that amount after 5 years that we add onto our mortgage. My understanding was that if the property goes up in value, the government will only benefit from that if we sell the house. We don't intend to sell, so if we remortgage after 5 years to include this loan will the amount we need to pay back still remain as the original loan?

The house price is £350k, 5% deposit of £17.5k and we're borrowing 20%, £70k, through HTB. If we remortgage after 5 years, will we still owe £70k or would it be 20% of the value at that time?

I can't seem to find an answer to this and mortgage brokers haven't been very clear! Wouldn't want to get ourselves into a situation where we're forced to sell or pay interest as we couldn't afford the remortgage!

Any advice would be appreciated!

Thanks

You'll pay back 20% of the value of the property, when you want to repay a valuation will be conducted to determine how much you repay.

nicx1

Thanks for clarifying!