We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Help to buy question
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!!
0
Comments
-
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.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!!
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
1 -
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.1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.5K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.6K Work, Benefits & Business
- 603K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards