Скачать или смотреть Key things to know before you apply for a Help to Buy: Equity Loan

Before applying for an equity loan, make sure you if Help to Buy scheme is right for you.

Consider getting independent financial advice before you apply.

Find out more about Help to Buy in our homebuyers’ guide: www.gov.uk/equity-loan-homebuyer

Help to Buy is not a price reduction or discount scheme.

The cost of your home will be the same with or without an equity loan.

When your equity loan starts, you'll pay a £1 monthly management fee.

This is paid by direct debit until you pay off your equity loan.

You'll pay administration fees for making changes to your equity loan, such as making a part repayment.

No interest is charged on your equity loan for the first 5 years.

From year 6, you'll pay interest at 1.75% of the equity loan amount borrowed.

Your interest rate will rise each year in April by the Consumer Price Index (CPI), plus 2%.

Your monthly interest payments will not go towards repaying your equity loan.

The total amount you repay will be based on the market value of your home when you repay, not the amount you borrowed.

If the market value of your home increases, so does the amount you have to repay.

And if the value of your home falls, the amount you repay also falls.

You must be a first-time homebuyer to be eligible for an equity loan.

Once you’re approved for an equity loan, you can apply for your repayment mortgage.

Equity loan terms are normally 25 years, but we’ll match it to your repayment mortgage.

Find out more at gov.uk/equity-loan-homebuyer