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Help to Buy · Rates & Costs

The Help to Buy 100.
Rates & Costs

Focus: Fees, interest rates, and the total cost of borrowing.

6+Questions
100%Expert Answers
FCARegulated
Can I use savings or investments to pay off the equity loan?
TL;DR Yes, you can use existing savings or cash investments to pay off your UK equity loan, but you must consider tax implications and the fluctuating value of your property.
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What are the administrative steps for paying off the equity loan?
TL;DR Learn what are the administrative steps for paying off the equity loan. We detail the required RICS valuation, obtaining a redemption statement, instructing solicitors, and completing the payment process accurately in the UK.
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Can I use a second charge mortgage to pay off the equity loan?
TL;DR Using a second charge mortgage to repay a Help to Buy Equity Loan is possible, but complex. Learn the benefits, risks, eligibility criteria, and the valuation process required.
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Would a personal loan or secured loan be a better option for repaying the equity loan?
TL;DR Deciding between a personal loan and a secured loan to repay your equity loan depends on the amount owed, interest rates, and risk appetite. We compare both options for UK homeowners.
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How will repaying the equity loan impact my monthly finances?
TL;DR Repaying your equity loan significantly alters your financial landscape. Learn about increased mortgage costs, valuation fees, and how refinancing impacts your budget and overall debt structure.
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Are there any tax benefits or liabilities related to the Help to Buy scheme?
TL;DR Understanding the tax implications of the Help to Buy scheme is crucial. We explain Capital Gains Tax (CGT), Stamp Duty (SDLT), and how the equity loan repayment affects your total liability when you sell.
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Promise Money is a broker not a lender. Therefore we offer lenders representing the whole of market for mortgages, secured loans, bridging finance, commercial mortgages and development finance. These loans are secured on property and subject to the borrowers status. We may receive commissions that will vary depending on the lender, product, or other permissable factors. The nature of any commission will be confirmed to you before you proceed.

More than 50% of borrowers receive offers better than our representative examples

The %APR rate you will be offered is dependent on your personal circumstances.

Mortgages and Remortgages

Representative example

Borrow £270,000 over 300 months at 7.1% APRC representative at a fixed rate of 4.79% for 60 months at £1,539.39 per month and thereafter 240 instalments of £2050.55 at 8.49% or the lender’s current variable rate at the time. The total charge for credit is £317,807.66 which includes £2,500 advice / processing fees and £125 application fee. Total repayable £587,807.66

Secured / Second Charge Loans

Representative example

Borrow £62,000 over 180 months at 9.9% APRC representative at a fixed rate of 7.85% for 60 months at £622.09 per month and thereafter 120 instalments of £667.54 at 9.49% or the lender’s current variable rate at the time. The total charge for credit is £55,730.20 which includes £2,660 advice / processing fees and £125 application fee. Total repayable £117,730.20

Unsecured Loans

Representative example

Annual Interest Rate (fixed) is 49.7% p.a. with a Representative 49.7% APR, based on borrowing £5,000 and repaying this over 36 monthly repayments. Monthly repayment is £243.57 with a total amount repayable of £8,768.52 which includes the total interest repayable of £3,768.52.

THINK CAREFULLY BEFORE SECURING OTHER DEBTS AGAINST YOUR HOME

REPAYING YOUR DEBTS OVER A LONGER PERIOD CAN REDUCE YOUR PAYMENTS BUT COULD INCREASE THE TOTAL INTEREST YOU PAY. YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON A MORTGAGE OR ANY OTHER DEBT SECURED ON IT.

Promise Money is a trading style of Promise Solutions Ltd – Company number 04822774
Promise Solutions, Fullard House, Neachells Lane, Wolverhampton, WV11 3QG

Authorised and regulated by the Financial Conduct Authority – Number 681423
The Financial Conduct Authority does not regulate some forms of commercial / buy-to-let mortgages

Website www.promisemoney.co.uk