Help to buy equity loan

Colligan

Wondering if someone can help me before i tear my hair out.


I completed on a new build property at the end of september and currently moved in and living in it.


The house was purchased with a mortgage and a help to buy equity loan.


I remember seeing something about until the equity loan is fully repayed there will be a £1 mangement fee payable per month.


I rang my first home as i've had nothing in the post about this nor has the money left my account, they did not have a clue what i was on about and where asking me was i wanting to payback my equity loan,, can anyone help?


I just don't want them chasing me for unpayment and putting a black mark against me on any credit report.



I hope this makes sense


Thanks


Colin.

Caz3121

the official site
https://www.helptobuy.gov.uk/equity-loan/equity-loans/
https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-Feb-2018-FINAL.pdf
it does mention You must pay a monthly management fee of £1 per month from the start of the loan until it is repaid.

Colligan

Thanks, i have read these articles before, however i still do not know how to pay this £1 mangement fee, when i called up they did not know what i was on about. :-(

xylophone

https://www.myfirsthome.org.uk/iwantto/understand-charges/

If you look at the Help to buy line on the chart, it does indeed show a management fee of £1 a month.

Contact MFH and refer to the chart?

amnblog

The official line is:

Fees can be paid in a single yearly payment or in monthly instalments. The monthly management fee (£1) is always paid monthly by direct debit.

The Agency’s Mortgage Administrator will collect your fees and interest by direct debit. They will contact you at least a month before your fees are due, to set up (if not already done so) your repayment arrangement.

You will also receive a statement each year confirming when your fees are payable. The annual statement will also show any payments you have made once you start paying the fee.

I must admit I have not had a Client discuss whether or not their monthly fee was being collected. I would have thought the most practical thing would be to roll it up and take payment in month 61.

kingstreet

There is a direct debit attached to the PIF so they will set it up and take the money when ready.

I wouldn't worry about it.