Help to buy paying back loan

barrysmith2480

Hi all , im saving a deposit towards buying my own house and was hoping to use the help to buy scheme as its totally unrealistic to save a 20% deposit on my own in my current situation but 5% should be do able.  What im struggling to find out the answer on his how much roughly you pay back to the gov , how soon they want it , for instance if i buy a home at 190k and borrow 20% off the gov thats a 38k loan which feels massive how are u supposed to pay a mortgage and then on top another 500 quid a month or so for the loan to the government ?

Seashell517

You pay no interest on the HtB loan for the first 5 years, then you pay interest at a rate of 1.75% for the first year, and this increases with inflation+2%. This does not affect the loan amount, it is still 20% of the market value of the house.

You have to pay the loan back when you sell or when your mortgage ends, or you can choose to pay it back sooner if you don't want to keep paying the interest payments on the loan. You pay back 20% of the market value of the house at the time you pay it back.

https://www.moneysavingexpert.com/mortgages/help-to-buy-equity-loans/

grumiofoundation

https://www.helptobuy.gov.uk/equity-loan/equity-loans/

barrysmith2480 said:

Hi all , im saving a deposit towards buying my own house and was hoping to use the help to buy scheme as its totally unrealistic to save a 20% deposit on my own in my current situation but 5% should be do able.  What im struggling to find out the answer on his how much roughly you pay back to the gov , how soon they want it , for instance if i buy a home at 190k and borrow 20% off the gov thats a 38k loan which feels massive how are u supposed to pay a mortgage and then on top another 500 quid a month or so for the loan to the government ?

Where do you get £500 a month from? 

Annual interest on £38,000 at 1.75% = £665. So less than £60 a month. 

grumiofoundation

Looking at your profile you have owned a property in the past? In this case you will unfortunately not be eligible for the new HTB equity loan scheme (link in comment above) as this is for first time buyers only. 

https://forums.moneysavingexpert.com/discussion/6128266/mortgage-advice-10-year-old-reposession#latest

macman

I think the OP was assuming that the loan was interest and capital over 5 years, rather than just interest- in which case it would be more like £680pm.

barrysmith2480

grumiofoundation said:

Looking at your profile you have owned a property in the past? In this case you will unfortunately not be eligible for the new HTB equity loan scheme (link in comment above) as this is for first time buyers only. 

https://forums.moneysavingexpert.com/discussion/6128266/mortgage-advice-10-year-old-reposession#latest

what really ?? i owned one 12 years ago and lost it , i rent now thats utter crap where are ppl like me supposed to get help

HampshireH

Anything there to help first time buyers are solely for first time buyers without any discretion. Especially on new builds 

You would need to try and find assistance for those who are current or former owners. There is definitely not as much out there. You, like everyone else would have to save for a deposit.