nah that shouldn't happen... if they've lent 20% they'd get back 20% of the proceeds when you sell - your mortgage doesn't increase so if your house has risen in value you can still gain from that rise from your 80% stake in the property
But if you re-mortgage at the market value as the property increases, then surely when you sell you would not see any extra money, which will generally make most people not want to sell?
I am not sure on the scheme because one person said it was 95% and another said it was a loan and a mortgage with no interest for 5 years.
For any mortgage if the deposit you have to put down is affordable and the mortgage payment per month is less than the market rent for the property. Then I would take the offer but i would be weary of restrictions on letting and other unnecessary clauses. Which would probably turn me off government backed mortgages if i did have enough for a deposit. I would also not buy a new build or a flat. I would buy as much land as possible and best house etc that i can afford, in terms of the deposit. Which i think most people do any way.
