Can I take out a 35 year mortgage under the governments Help To Buy Equity Loan scheme?
Asked on Jan 19 2014,
Home Finance in Huntingdon |
It's worth checking out the rules surrounding the equity loan scheme before you commit to buying - click the attached link below to have a look at the requirements you need to fulfill.
With regards to the length of your mortgage, this side of the deal is down to yourself, as long as you work with a lender who is approved for the Help to Buy scheme. However, while it is permitted for you to take out a 35-year mortgage, it is not recommended because you need to pay your equity loan (20 per cent of the house price) back when it expires after 25 years, regardless of whether your mortgage is still being paid off.
Some people will still opt for this, and of course it is possible that you will have sold and moved on before this elapses (in which case you will already have paid off the equity loan anyway), but it is certainly worth discussing with a financial adviser before you commit to a 35-year mortgage, just so you know what your options are and what you will be required to pay at various points.
Answered on Jan 24 2014,
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