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help to buy scheme

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dazzz
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2015/02/26 15:29:05 (permalink)
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help to buy scheme

can someone explain this to me? I dont understand it
 
You won’t be charged loan fees for the first 5 years of owning your home.
In the sixth year, you’ll be charged a fee of 1.75% of the loan’s value. After this, the fee will increase every year. The increase is worked out by using theRetail Prices Index plus 1%.
Your Help to Buy agent will contact you before the fees start, to set up monthly payments with your bank. You’ll also be sent a statement about your loan each year.
Fees don’t count towards paying back the equity loan.
 
sayi had 20k off the government, what would the fees be? and what would/could they rise to year on year?

  




 
#1

6 Replies Related Threads

    0605405n
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    Re: help to buy scheme 2015/02/26 16:01:54 (permalink)
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    I've just bought a new build flat with this scheme, it works out really well for me.
     
    Government have lent us 20% of the flat (£48,400), which is interest free for 5 years. When you add in the deposit, it means that the mortgage you have to take out is considerably less, therefore paying less every month. After 5 years, I'll start having to pay interest on the government loan, so with the percentage you've quoted above (1.75%), £847 per year (on top of my mortgage).
    #2
    dazzz
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    Re: help to buy scheme 2015/02/26 16:15:02 (permalink)
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    but then that goes up by 1% every year until youve paid the loan? so next year youl have to pay £1680 and so on?

      




     
    #3
    RobW
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    Re: help to buy scheme 2015/02/26 17:10:53 (permalink)
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    How did you get to £1680?
    #4
    dazzz
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    Re: help to buy scheme 2015/02/26 17:17:11 (permalink)
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    1% again. ( give or take)

    Or is it 1% of the £847 ?

      




     
    #5
    0605405n
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    Re: help to buy scheme 2015/02/26 20:05:54 (permalink)
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    Yeah I guess it will be 2.75% of the loan (plus retail prices index) the next year. Guess it's not for the long haul. Being a new build flat, I'm planning on selling up within 5 years anyway
    #6
    Smokey87
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    Re: help to buy scheme 2015/02/27 06:26:10 (permalink)
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    Where looking into this Dazz. My plan is to have it paid back before the 5 years is up... Hopefully haha.
    My problem at the minute is the bank winging about my tax status, hope fully after I submit my books in April they will come round.
    #7
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