Help to buy...

R.O.S.S.I said:
So could someone show me the workings out and a rough idea of mortgage repayments on for example a £160000 house if I had 5% deposit and took the HTB scheme so took the 20% loan.

Just using an average rate of 4% for the mortgage and being over 30 years what would my repayments be in the first 5 years, and then after the 5th year when I have to start repaying the loan back?
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Basically every banks website will have a calculator that will work this out for you. :p
 
R.O.S.S.I said:
So could someone show me the workings out and a rough idea of mortgage repayments on for example a £160000 house if I had 5% deposit and took the HTB scheme so took the 20% loan.

Just using an average rate of 4% for the mortgage and being over 30 years what would my repayments be in the first 5 years, and then after the 5th year when I have to start repaying the loan back?
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About £750 per month i think that would be. Can't believe i spend that on rent right now :(
 
Jono8 said:
It specifically says in the guide that if the house value falls so does the equity loan and therefore how much you pay back.

"As long as you have complied with all your obligations in the Help to Buy mortgage deed, you will not be required to provide for any shortfall in the equity loan if you sell when values have fallen."

There is even a table showing it as well. The equity loan is just that, 20%(well up 20%) of the value of your property.
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"If you sell"

What about if you want to buy their shares out?
 
FortuitousFluke said:
I'm assuming you've switched/remortgaged during that time? I've been on the scheme a few months now, how easy did you find the remortgaging process? Many relevant products out there?
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Nope, after the 3 year fixed expired, we just let it move to the standard rate, as it is only 4%, and as we plan to sell within the next year or two, no point tying in to another mortgage deal while the rates are so low.

rossk26 said:
"If you sell"

What about if you want to buy their shares out?
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Staircasing is done on the current value of the property, so if it has dropped, you get the equity for cheaper.
 
Django x2 said:
This help to buy scheme fills me with dread. Its theoretically allowing people to buy £600k homes and not start repaying the government loaned deposit for 5 years.

As an extreme example:

£600k home at 4% is just over £3k a month mortgage repayment, assuming you had 10% deposit of £60k.
(I'm unsure if the HTB is for homes upto £600k including deposit - anyway)

Use HTB to get an extra 10% deposit means you owe £60 after 5 years. Interest added at 1.75% per year of the loan with a minimum 10% payment of the property value.

Disaster waiting to happen
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complete madness, its pushing up prices making it very unfordable.
 
R.O.S.S.I said:
Yeh theres plenty of mortgage calculators. I'm just on about how much extra you'd have to pay once you hit year 6 when you start paying back the equity loan.
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Year 6 = 1.75% of whatever your equity loan is.
Year 7 = 1.75% x 1.0(RPI + 1)
Year 8 = As above increasing again
etc

So if you have a £20k equity loan, in Year 6 you have to pay £350 in fees.
 
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