Help to Buy House Target Direct Debit

black_hawk84

Hello,

I bought my house last year with Government approved Help to Buy scheme. Not sure whether it was a good idea or not but as I was struggling with my finances so bought my first house to have a place to live. 
My only concern now is I received a letter from "Target" saying they will setup a  DD on my account and will start charging me £1 administration fees. I am bit confused as why Target charging me £1 as I am only into my first year of free interest for 5 years period. Why they are setting up this DD and do I need to do anything about this?

Any help would be much appreciated. 


Thanks

Comms69

Have you tried calling them to ask?

MovingForwards

Whats it say in the T&C's of your H2B information pack?

Helptobuypurchase

It is in the help to buy T&Cs that we will pay a fee of £1 a month to target via direct debit for the first five years. 

kingstreet

When you complete a Property Information Form for your HTB loan, you complete a DDM and the declaration says;-

"DIRECT DEBIT FORM: Please complete, sign and return the attached Direct Debit Form. This is to authorise your bank to debit the monthly fees which will fall due under the Equity Mortgage (which will be £1 per month for the first 5 years of the Equity Mortgage). We confirm that the Direct Debit form will only be used in the event that you purchase the Property and enter into an Equity Mortgage with the Agency.

It's also in the HTB Buyer's Guide which can be found here;-

https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-Feb-2018-FINAL.pdf

and I suspect it's also in the Personal Worked Example pack you receive with your ATP.

bucksbloke

Yes, its right that you pay £1 per month for the first five years. Although it took Target 7 months and several emails from me to finally start charging me!