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Need advice on help to buy first time buyer
umair_me
Posts: 4 Newbie
I am planning to buy a new build using help to buy and I am first time buyer as well. But I am just thinking of things in future for which I have some questions in mind.
So the property I am seeing is £238k semi 3 bed near Nottingham.
If I buy this using the help to buy 5% deposit and 20% loan.
1. What happens after 5 years if I don't pay the 20% loan and how much interest do I have to pay (roughly) on top of my mortgage.
2. If I want to sell the house whether the house price has gone down or up. Will the 20% loan money be paid from the price the house is sold for?
3. As this is new built, roughly what sort of price deprecation am I looking at after buying the house?
4. Finally is it a good idea to buy a new build during these times, the mortgage rate I am getting is high as well but I do have to buy now or after few months, so I thought to just go for it as I do have savings for deposit now.
Thank you for any help.
So the property I am seeing is £238k semi 3 bed near Nottingham.
If I buy this using the help to buy 5% deposit and 20% loan.
1. What happens after 5 years if I don't pay the 20% loan and how much interest do I have to pay (roughly) on top of my mortgage.
2. If I want to sell the house whether the house price has gone down or up. Will the 20% loan money be paid from the price the house is sold for?
3. As this is new built, roughly what sort of price deprecation am I looking at after buying the house?
4. Finally is it a good idea to buy a new build during these times, the mortgage rate I am getting is high as well but I do have to buy now or after few months, so I thought to just go for it as I do have savings for deposit now.
Thank you for any help.
0
Comments
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useful information re interest and repaying loan on their site https://www.helptobuy.gov.uk/equity-loan/equity-loans/
depreciation is not fixed, it can depend if there are any new build incentives around at the time you are selling and the market in general. Similar to "are house prices going to increase or decrease?" people will have their opinions but nobody knows...1 -
The first two answers can be found in the HTB EL FAQumair_me said:I am planning to buy a new build using help to buy and I am first time buyer as well. But I am just thinking of things in future for which I have some questions in mind.
So the property I am seeing is £238k semi 3 bed near Nottingham.
If I buy this using the help to buy 5% deposit and 20% loan.
1. What happens after 5 years if I don't pay the 20% loan and how much interest do I have to pay (roughly) on top of my mortgage.
2. If I want to sell the house whether the house price has gone down or up. Will the 20% loan money be paid from the price the house is sold for?
3. As this is new built, roughly what sort of price deprecation am I looking at after buying the house?
4. Finally is it a good idea to buy a new build during these times, the mortgage rate I am getting is high as well but I do have to buy now or after few months, so I thought to just go for it as I do have savings for deposit now.
Thank you for any help.
https://www.helptobuyagent2.org.uk/help-to-buy-schemes/equityloan/equity-loan-faqs
3. It's not a given that new build homes lose value straight away.
4. No one has a crystal ball that tells them what the housing market is going to be doing in the future. You're buying a home not an investment. If buying a home for you is the right option for you at this point in your life then buy, if it isn't then wait until you are ready but don't try to be clever and time any purchase around what the housing market may or may not be doing.1 -
Thank you for clarification and links to FAQ.0
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Terrible time to be doing this IMO.0
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Do you have to go for HTB?
Are there no cheaper houses to purchase? Or is it because of deposit?
It was stated here yesterday that 90% mortgages are coming back for FTB’s
MFW 2026 #5007/03/25: Mortgage: £67,000.00
Mortgage:
04/04/26: £33,500
07/03/26: £34,418.15
16/01/26: £56,794.25
02/01/26: £60,223.17
12/08/25: Mortgage: £62,500.00
12/06/25: Mortgage: £65,000.00
18/01/25: Mortgage: £68,500.14
27/12/24: Mortgage: £69,278.38
Savings: £20,0000
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