{"id":113433,"date":"2020-01-06T14:00:23","date_gmt":"2020-01-06T07:00:23","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/should-we-take-out-the-maximum-help-to-buy-equity-loan\/"},"modified":"2020-01-06T14:50:59","modified_gmt":"2020-01-06T07:50:59","slug":"should-we-take-out-the-maximum-help-to-buy-equity-loan","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/should-we-take-out-the-maximum-help-to-buy-equity-loan\/","title":{"rendered":"Should we take out the maximum help-to-buy equity loan?"},"content":{"rendered":"


\nA reader looking to buy a property in London seeks advice on whether or not to go with a higher mortgageQ My partner and I are looking to buy a property in London using the help-to-buy scheme, which means we can pay a deposit of as little as 5% and get an equity loan of up to 40%, then take out a 55% mortgage. We have a deposit of about 10% saved up and can afford a 70% mortgage. Interest rates are low right now and that doesn\u2019t seem to be changing any time soon, so I am tempted to go with a higher mortgage and deposit, so we can own more of our property. People think I am crazy not to take advantage of the upper limit of the help-to-buy equity loan, but I hate the idea that the amount I could owe someone might keep rising (even though it could fall as well \u2026 but hopefully not). Am I being too conservative and naive? Should I take advantage of the equity loan?MWA I think you are right to be cautious about taking out the maximum 40% equity loan just because you can. You are also being sensible in wanting to own as much of your property as possible. And you are right that the main drawback of the help-to-buy scheme is that \u2013 assuming house prices keep rising \u2013 the amount you have to pay back to Homes England (which provides the equity loan) will also keep rising. Conversely, the amount you owe on a mortgage keeps going down because you are only allowed to take out a repayment mortgage \u2013 which can now have a term of up to 35 years \u2013 under the conditions of the help-to-buy scheme. Continue reading…
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\nSource : theguardian.com
\nRead more…Should we take out the maximum help-to-buy equity loan?<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

A reader looking to buy a property in London seeks advice on whether or not...<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-113433","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-tvz","jetpack-related-posts":[{"id":105071,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/how-should-i-fund-my-help-to-buy-home-purchase\/","url_meta":{"origin":113433,"position":0},"title":"How should I fund my help-to-buy home purchase?","date":"March 16, 2019","format":false,"excerpt":"\r I\u2019m wondering if I should try to borrow more in a mortgage and get a smaller government loanQ I am currently in a process of securing a mortgage and help-to-buy equity loan on a new build with a purchase price of \u00a3420,000. My mortgage adviser has proposed that, to\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":185,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/can-we-remortgage-to-pay-off-the-equity-loan-on-our-home\/","url_meta":{"origin":113433,"position":1},"title":"Can we remortgage to pay off the equity loan on our home?","date":"November 5, 2015","format":false,"excerpt":"\r Property prices are rising so my fiance and I would like to pay off our Help to Buy loan but are unsure whether a remortgage is the best way to do thisQ My fiance and I have a joint mortgage on a new-build home in Scotland. The house cost\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":107726,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/i-own-a-property-can-i-get-a-deal-if-i-buy-another-with-a-friend\/","url_meta":{"origin":113433,"position":2},"title":"I own a property \u2013\u00a0can I get a deal if I buy another with a friend?","date":"June 3, 2019","format":false,"excerpt":"\r He\u2019s a first-time buyer and we\u2019re hoping to get a better mortgage and pay less stamp dutyQ I am really hoping you could give me some advice. I am currently based in London throughout the week and spend most weekends in Nottingham where I recently bought a property as\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":108192,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/im-a-first-time-buyer-do-i-earn-enough-to-get-a-mortgage\/","url_meta":{"origin":113433,"position":3},"title":"I'm a first-time buyer \u2013\u00a0do I earn enough to get a mortgage?","date":"June 17, 2019","format":false,"excerpt":"\r I\u2019m worried that the repayments on my help-to-buy loan will count against me with a lenderQ I hope you might be able to provide some insight for me as I begin my (optimistic) search for a first property. I\u2019m 26 years old and single and a couple of years\u2019\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8762,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/should-we-use-savings-to-pay-off-part-of-our-help-to-buy-loan\/","url_meta":{"origin":113433,"position":4},"title":"Should we use savings to pay off part of our Help to Buy loan?","date":"August 7, 2014","format":false,"excerpt":"\r A reader wonders whether to use savings on Help to Buy, or to reduce her main mortgage \u2013 or to wait to remortgageQ My husband and I purchased a new-build house for \u00a3300,000 in January 2014, with a \u00a340,000 deposit, \u00a360,000 Help to Buy equity loan and a \u00a3200,000\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":77684,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/should-i-use-the-help-to-buy-scheme-for-a-new-build-home\/","url_meta":{"origin":113433,"position":5},"title":"Should I use the help-to-buy scheme for a new-build home?","date":"January 22, 2018","format":false,"excerpt":"\r I\u2019ll need to repay 12.5% of the value when I pay the loan off \u2013 I might lose out if it\u2019s worth more Q My wife and I have reserved a new-build property in Surrey costing \u00a3600,000. We are now considering whether or not to use the help-to-buy scheme.\u2026","rel":"","context":"In "Property News"","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"_links":{"self":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/113433"}],"collection":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/comments?post=113433"}],"version-history":[{"count":0,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/posts\/113433\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/media?parent=113433"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/categories?post=113433"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.siamlandbank.com\/propertynews\/wp-json\/wp\/v2\/tags?post=113433"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}