Help to buy loan dismay

last_mile

bobster2 said:

brownfox65 said:

I recently contacted the housing company to confirm the amount we would need to repay, they explained that it would be 30% of the CURRENT valuation, I was completely shocked.

We love our home but we will have to sell our house and move somewhere smaller as we simply don’t have the minimum £76,000 to pay the loan back and our mortgage lender is unlikely to approve an extension of our mortgage due to my husbands age. 

Completely devastated.

This page is from 2010 but I assume a similar version would have been available in 2008...

https://www.gov.uk/government/publications/homebuy-direct/homebuy-direct-buyers-guide-accessible-version

The Agency and the housebuilder will provide equal equity loans to fund the balance needed to make up the full purchase price of your home, up to a maximum of 30% of the full purchase price. These equity loans must be repaid when you sell your home, at which point you must repay the same percentage of the proceeds of the sale to the Agency and the housebuilder as the initial equity loans (i.e. if you received equity loans for 30% of the purchase price of your home, you must repay 30% of the proceeds of the sale).

this link at the bottom states:


It does sound like a case of not fully grasping what the OP is being told and shown.

I'm in my mid 30s so would have just been 20 when this took place but I can tell you that it was made plainly clear to me in 2012 that the repayment was a % of the value at sale.

chanz4

last_mile said:

bobster2 said:

brownfox65 said:

I recently contacted the housing company to confirm the amount we would need to repay, they explained that it would be 30% of the CURRENT valuation, I was completely shocked.

We love our home but we will have to sell our house and move somewhere smaller as we simply don’t have the minimum £76,000 to pay the loan back and our mortgage lender is unlikely to approve an extension of our mortgage due to my husbands age. 

Completely devastated.

This page is from 2010 but I assume a similar version would have been available in 2008...

https://www.gov.uk/government/publications/homebuy-direct/homebuy-direct-buyers-guide-accessible-version

The Agency and the housebuilder will provide equal equity loans to fund the balance needed to make up the full purchase price of your home, up to a maximum of 30% of the full purchase price. These equity loans must be repaid when you sell your home, at which point you must repay the same percentage of the proceeds of the sale to the Agency and the housebuilder as the initial equity loans (i.e. if you received equity loans for 30% of the purchase price of your home, you must repay 30% of the proceeds of the sale).

this link at the bottom states:


It does sound like a case of not fully grasping what the OP is being told and shown.

I'm in my mid 30s so would have just been 20 when this took place but I can tell you that it was made plainly clear to me in 2012 that the repayment was a % of the value at sale.

and myn it said it in black and white