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Help to Buy Equity Loan - help!
jonesydave
Posts: 21 Forumite
Hi
We are looking to purchase a new build on help to buy for 245'000. We have a 10% deposit (24500) but don't want to take the full 20% equity loan as we want to pay it off within 5 years. Can somebody advise if we can put down 10%, and take 15% HTB equity loan? I can't seem to find anything online... it all focuses on people with the minimum 5% deposit.
Any help is greatly appreciated!!
We are looking to purchase a new build on help to buy for 245'000. We have a 10% deposit (24500) but don't want to take the full 20% equity loan as we want to pay it off within 5 years. Can somebody advise if we can put down 10%, and take 15% HTB equity loan? I can't seem to find anything online... it all focuses on people with the minimum 5% deposit.
Any help is greatly appreciated!!
0
Comments
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Yes you can put down a larger deposit and apply for a lower HTB than 20%0
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Is this more hassle than it’s worth if you can just get a decent rate of interest at 90% LTV?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0
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This is what I was thinking... but surely getting 15% extra equity and paying it off interest free makes more financial sense does it not? ..As we can afford to pay off the equity loan within the 5 years.0
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The problem is that you repay the equity loan based on the future value of the property. It's interest free, but if the property value rises enough you might end up paying more than if you took 90% LTV mortgage from the start. Not to mention the associated cost with the redemption of the equity loan.jonesydave wrote: »This is what I was thinking... but surely getting 15% extra equity and paying it off interest free makes more financial sense does it not? ..As we can afford to pay off the equity loan within the 5 years.0
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