Well, 20% HTB and 5% from ourselves obviously guarantees the lowest monthly mortgage repayments but if 10% HTB and 5% from ourselves doesn't yield that big a difference then it is worth looking at. It's the difference between paying back £50k or £25k on the property we are buying. Can pay back £25k easily within the 5 years if the monthly mortgage payments are right. Paying back £50k within 5 years is, well, impossible. Without taking a personal loan at the end or remortgaging for the difference + equity etc.
Help to Buy scheme
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Well, 20% HTB and 5% from ourselves obviously guarantees the lowest monthly mortgage repayments but if 10% HTB and 5% from ourselves doesn't yield that big a difference then it is worth looking at. It's the difference between paying back £50k or £25k on the property we are buying. Can pay back £25k easily within the 5 years if the monthly mortgage payments are right. Paying back £50k within 5 years is, well, impossible. Without taking a personal loan at the end or remortgaging for the difference + equity etc.
In your circumstances yes it would be worth looking at. Our difference wouldn't be as high as yours. Our 20% is going to be around £33k to £38k at the end tops.
Our mortgage came down again and our wages going up so we are very much on target.
Good luck with the house.
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Thanks! And you, it's a bit of a double edged sword isn't it? You buy a house and you WANT the market to boom so your investment is worth more. However, you also really really don't so you don't have to pay back more. Haha. Such is life eh
https://www.helptobuy.gov.uk/equity-loan/how-to-apply-equity-loan/
Just seen the video on this page and the information provided at 1m20sec is completely incorrect, is it not?
Just seen the video on this page and the information provided at 1m20sec is completely incorrect, is it not?
Associate
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Thanks! And you, it's a bit of a double edged sword isn't it? You buy a house and you WANT the market to boom so your investment is worth more. However, you also really really don't so you don't have to pay back more. Haha. Such is life eh
But they still only get 10 or 20% of the money, whereas you get the rest, so you do want the value to increase
But only once you have paid back the loan!But they still only get 10 or 20% of the money, whereas you get the rest, so you do want the value to increase
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About the voluntary part-repayments? Its true they just failed to specify that you can't just go an pay back 1% here and there...
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I thought you had to either pay 10% back or the whole 20% back at any one time
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But only once you have paid back the loan!
Its not that much money though, they get 1k, you get 9k on every 10k increase....
Which is quite vital information don't you think? You simply cannot "make voluntary part-repayments at any time" as suggested. You can pay lump sums of 10% at a time and the loan can never be less than 10%. To me, these two statements are worlds apart.
Caporegime
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But only once you have paid back the loan!
not really. as pointed out for every 1K extra you have to pay them you have made 9K.
so it's a win/win situation.
otherwise don't take the loan if you don't need it.
^^Exactly, I don't know why people are so 'scared' of having an asset you own the majority of increase in value. People begrudge having to pay the government more money but if they sat down at looked at it, their gain far outweighs. If I took out HTB with a £20k equity loan on a £200k and at the end of it I owed the government £30k I would be absolutely over the moon. Because that means my share of the property would be worth £270k. So what if I owe an extra £10k more than I borrowed - I can fund that from the equity increase and STILL have another £80k 'profit'.
Provided people budget properly to ensure they fully repay after 5 years it is a useful scheme for some (i.e. those that couldn't get the funds for a property of that price). If push comes to shove and you don't have the cash available, then you remortgage or sell up to repay the debt and are still quids in.
Provided people budget properly to ensure they fully repay after 5 years it is a useful scheme for some (i.e. those that couldn't get the funds for a property of that price). If push comes to shove and you don't have the cash available, then you remortgage or sell up to repay the debt and are still quids in.
I've done this recently and was lucky enough after 3 years to be able to payoff the 20% share
The good part is you have to get it valued by a RICS valuer and not who values it for thebank
With that said throwing some easy figures in like above
Bank valued at 100k
RICS at 91k
So was very easy to remortgage for what I needed
The good part is you have to get it valued by a RICS valuer and not who values it for thebank
With that said throwing some easy figures in like above
Bank valued at 100k
RICS at 91k
So was very easy to remortgage for what I needed