HTB in the event of Housing Crash

Fisherchristian

I’ve tried finding an answer to this but it’s proving quite difficult! As a first time buyer using the HTB loan scheme buying at the apparent peak of the housing market (bad timing!) I have a question if anybody can help answer it!

The HTB guidance is quite clear if house prices UP that the 20% owed will be 20% at the time of settlement not the 20% initially loaned, but it doesn’t explicitly say that the same applies if prices go DOWN. Because if the forecasted plummet we could experience in the case of a no deal brexit becomes reality it could be a blessing in disguise! Well if you have the funds to cover whatever outstanding after prices drop of course!

Does anybody have a definitive answer as to whether my logic is correct?

Thanks all!!

Thrugelmir

The amount to be repaid is a fixed % of the value at the time of sale.

Tomg84

It's a shared equity scheme. You repay 20% of the loan. If you bought a house at £200k (£40k loan) and then it was worth £100k. Then you'd only have a £20k loan. A bit dramatic though but you get the point.

Who knows if this a peak or a crash is about to happen! Nobody knows....

Fisherchristian

Great thanks, I thought it was that simple but wouldn’t be surprised if there was a hidden rule our completely transparent government had managed stick in there! Thanks for your help