HTB equity loan vs Outright purchase

shaggyuk

getmore4less wrote: »

The savings are two part, interest free on 57k but a lower rate on the 288k is more.

There is the risk you can't get additional borrowing in 2 years.

The other important thing I forgot to disclose was my current Tier 2 visa status. Hence very very less lenders in the market are interested in lending at the moment also little bit cautious about higher % LTV lending too (for e.g. 90% LTV in case of Option 2). ILR in 2 yrs time will hopefully open up lot many options for me to cherry pick from if additional borrowing with help of increased salary and little bit higher equity (through 2 yrs of consistent over payment) is granted.

Yes in worst case may need to wait for another 2/3 yrs more and 'enjoy' interest free loan

shaggyuk

FatherAbraham wrote: »

The "HTB Equity Loan" isn't a loan at all.

It's a co-purchase, which is rent-free for the five years, then begins to rise.

The rent is called "interest" by the scheme, in order to mislead everyone.

Exactly and hence it is important to have an exit route planned before opting for it!