Help to buy question

lufase

Regarding the interest you start paying on the help to buy equity loan after 5 years, is this based on the original loan amount? So say after five years I can only afford to pay off 10% of the 20% loan, the interest payments will still be based on the original loan amount borrowed or will they be now be based upon the outstanding loan amount after paying off 10% of the property value? I hope this makes sense!!

[Deleted User]

lufase said:

Regarding the interest you start paying on the help to buy equity loan after 5 years, is this based on the original loan amount? So say after five years I can only afford to pay off 10% of the 20% loan, the interest payments will still be based on the original loan amount borrowed or will they be now be based upon the outstanding loan amount after paying off 10% of the property value? I hope this makes sense!!

It's based on the purchase price multiplied by the equity loan share.  If you were to repay some of the equity loan then the equity loan share would decrease.

https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/948067/Homebuyers-guide-to-Help-to-Buy-Equity-Loan-2021-2023.pdf

lufase

It's based on the purchase price multiplied by the equity loan share.  If you were to repay some of the equity loan then the equity loan share would decrease.

Thanks for the link. This is exactly what I was looking for.