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    • Hutch100uk
    • By Hutch100uk 7th Aug 18, 11:53 AM
    • 397Posts
    • 95Thanks
    Hutch100uk
    Help to buy redemption
    • #1
    • 7th Aug 18, 11:53 AM
    Help to buy redemption 7th Aug 18 at 11:53 AM
    I have just had an RICS valuation done on my home and it has been valued at 6k less than I paid for it but the same as the sale price.

    Does this mean I only pay 20% of this figure, rather than the original loan amount?

    It does seem to state this on the documents but I'm surprised they don't expect the full loan amount back. I would be paying over 1000 less than I borrowed.

    Do I pay any interest on the loan? I'm still within the 5 year interest free period.
    Last edited by Hutch100uk; 07-08-2018 at 11:55 AM.
Page 1
    • Jane_B
    • By Jane_B 7th Aug 18, 12:57 PM
    • 81 Posts
    • 30 Thanks
    Jane_B
    • #2
    • 7th Aug 18, 12:57 PM
    • #2
    • 7th Aug 18, 12:57 PM
    You pay 20% of what it sells for, it doesn't matter if you borrowed more. The RICS value is a guide for you and them, they base the 20% on what you finally sell the property for.

    Do I pay any interest on the loan? I'm still within the 5 year interest free period. - is this a serious question...
    • Hutch100uk
    • By Hutch100uk 7th Aug 18, 1:06 PM
    • 397 Posts
    • 95 Thanks
    Hutch100uk
    • #3
    • 7th Aug 18, 1:06 PM
    • #3
    • 7th Aug 18, 1:06 PM
    You pay 20% of what it sells for, it doesn't matter if you borrowed more. The RICS value is a guide for you and them, they base the 20% on what you finally sell the property for.

    Do I pay any interest on the loan? I'm still within the 5 year interest free period. - is this a serious question...
    Originally posted by Jane_B
    Stupid question I know but the wording on the documentation talks about outstanding interest with no mention of paying it off within the 1st 5 years!
    • kingstreet
    • By kingstreet 7th Aug 18, 1:25 PM
    • 34,216 Posts
    • 18,573 Thanks
    kingstreet
    • #4
    • 7th Aug 18, 1:25 PM
    • #4
    • 7th Aug 18, 1:25 PM
    You pay 20% of what it sells for, it doesn't matter if you borrowed more. The RICS value is a guide for you and them, they base the 20% on what you finally sell the property for.

    Do I pay any interest on the loan? I'm still within the 5 year interest free period. - is this a serious question...
    Originally posted by Jane_B
    if selling, redemption is based on higher of valuation or sale price.

    Redemption with Sale

    In this case, the market value used to calculated your Redemption Figure will be the figure provided in the RICS Valuation Report or the Sales Price (the higher of the two)
    See page four of Loan Redemption Information Pack.
    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.
    • kingstreet
    • By kingstreet 7th Aug 18, 1:35 PM
    • 34,216 Posts
    • 18,573 Thanks
    kingstreet
    • #5
    • 7th Aug 18, 1:35 PM
    • #5
    • 7th Aug 18, 1:35 PM
    Guide here;-

    https://www.myfirsthome.org.uk/wp-content/uploads/2016/05/CUSTINFO-Approved-04May2018.pdf
    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.
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