Help to buy New build

Nalaka

Hi All
I am planing to buy a new build using help to buy. With house prices going down or I'am planing to settle the help to buy in two years time(getting a 2 year fixed deal) with my savings and by remortgaging the rest (Only a small present). Does any body have an Idea of the cost of paying help to buy early and the Valuation of a new home in two years.(Can any on also advice me on this and let me know o how to proceed).
Thanks
Nalaka

Monkeysocks42

There is no cost to redeeming a H2B loan "early". It's not a fixed term loan so can be redeemed at any point. It is interest free for the first 5 years but does have monthly/yearly fees payable to Target.
There is no guarantee values will drop from your purchase price in the next 2 years so you may find you need to pay back more than you initially borrowed as a percentage of any increase.

In terms of costs to redeem, which are the same regardless of how many years you wait, you will need to pay for a surveyor to value the property, an admin fee to Target (I think this is currently around £200/300) and conveyancing costs for a solicitor to deal with the legal aspect of redeeming the loan.

jamie_128

You think the house will go down but trust me it wont when you get a surveyor, mine got valued at what i paid for it 10 years ago, despite knowing fine well i couldent sell for anywhere near that price so good luck.

bexybest

I have just redeemed my Help To Buy during the sale of my home - I appreciate this isn't what you are planning on doing. I managed to save a little on the repayment as my house dropped in price over the 3 years of ownership.

The costs were £200 fee to Target (the administrators), £240 fee to the RICS surveyor to value the house plus solicitor fees which I didn't pay any additional for.

The process can be laborious as you/solicitor have to send letters back & forth. But I managed to get a surveyor round the day I called and then got the Authority To Complete back from Target shortly after - they give a minimum timescale of 15 working days.

Make sure you read the information pack thoroughly before committing. I never had a problem with HTB but it won't be for everyone.

Nalaka

Thank you very much for you reply's they are really useful.