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  • FIRST POST
    • as400
    • By as400 5th Mar 18, 2:03 PM
    • 158Posts
    • 21Thanks
    as400
    Clearing Help To Buy Equity Loan
    • #1
    • 5th Mar 18, 2:03 PM
    Clearing Help To Buy Equity Loan 5th Mar 18 at 2:03 PM
    Borrowed the 20% =55K

    Am I OK to clear it in total by paying 5,500 each year for 10 years?...10% is the minimum payment right?

    Has it got to be a 10 or 20% payment each time?...or can it be say a 15% payment?

    and as long as the house isn't sold its just that 55K that needs paying....not 20% value of the house?

    Have I understood that correctly?

    (obviously after the 5 years an interest payment is due but this question is just about clearing the equity loan)

    Thanks
Page 1
    • zx81
    • By zx81 5th Mar 18, 2:12 PM
    • 16,803 Posts
    • 17,813 Thanks
    zx81
    • #2
    • 5th Mar 18, 2:12 PM
    • #2
    • 5th Mar 18, 2:12 PM
    It's based on the value of your house at the time.

    Any payment must be a minimum of 10% of your home's value - not 10% of the loan.

    https://www.helptobuy.gov.uk/wp-content/uploads/Help-to-Buy-Buyers-Guide-Feb-2018-FINAL.pdf
    • kingstreet
    • By kingstreet 5th Mar 18, 2:15 PM
    • 33,347 Posts
    • 18,041 Thanks
    kingstreet
    • #3
    • 5th Mar 18, 2:15 PM
    • #3
    • 5th Mar 18, 2:15 PM
    You can repay the loan in no more than two lump sum payments.

    100%, or two lots of 50%.

    Based on property value at time, not original loan.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • cashbackproblems
    • By cashbackproblems 5th Mar 18, 2:18 PM
    • 1,747 Posts
    • 682 Thanks
    cashbackproblems
    • #4
    • 5th Mar 18, 2:18 PM
    • #4
    • 5th Mar 18, 2:18 PM
    What a con so glad I didn't get roped into schemes like these.
    • as400
    • By as400 5th Mar 18, 3:04 PM
    • 158 Posts
    • 21 Thanks
    as400
    • #5
    • 5th Mar 18, 3:04 PM
    • #5
    • 5th Mar 18, 3:04 PM
    You can repay the loan in no more than two lump sum payments.

    100%, or two lots of 50%.

    Based on property value at time, not original loan.
    Originally posted by kingstreet
    Really?...I keep reading about 10% or 20%....I don't see 50 mentioned?

    "Borrowers can choose to repay the equity loan at any time, without penalty. You can pay back either 10% or 20% of the total amount, so long as the loan is worth at least 10% of the value of your home. "
    Last edited by as400; 05-03-2018 at 3:08 PM.
    • kingstreet
    • By kingstreet 5th Mar 18, 3:45 PM
    • 33,347 Posts
    • 18,041 Thanks
    kingstreet
    • #6
    • 5th Mar 18, 3:45 PM
    • #6
    • 5th Mar 18, 3:45 PM
    20% of the property value = 100% of the loan.

    10% of the property value = 50% of the loan.

    You seemed to be having a problem with 10%, 20% so I thought 50% and 100% might help.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • amnblog
    • By amnblog 5th Mar 18, 5:57 PM
    • 10,459 Posts
    • 4,131 Thanks
    amnblog
    • #7
    • 5th Mar 18, 5:57 PM
    • #7
    • 5th Mar 18, 5:57 PM
    You get to live in a spanking new property you could not otherwise finance.

    You get 25% deposit mortgage rates when you only put 5% in.

    Where is the con?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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