Help to Buy - What are the negatives of Help to Buy? | First Time Buyer Mortgage UK

🎥 In this video, I talk about the Help to Buy scheme. It is to help First Time Buyers in the UK understand what the downside to the Help to Buy Equity Loan is.

*Disclaimer: If you do not cancel within the first 30 days you will be charged £14.99. I will receive a £12 referral fee if you utilise the 30-day free trial through my referral link.

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I am a Whole of Market, CeMAP qualified mortgage & protection adviser. I created the "Vegan Mortgage Adviser" as there was a demand for Ethical/Vegan individuals. Regardless of whether you're Vegan or not, I want to help you with probably the biggest commitment of your life, a mortgage and ensure you are protected properly where necessary.

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[buytolet-landlords]

*Disclaimer: If you do not cancel within the first 30 days you will be charged £14.99. I will receive a £12 referral fee if you utilise the 30-day free trial through my referral link.

[SelfInvested]

You make some good points, but I don’t think the HTB loan is a terrible thing. Like most things, it just depends on how you use it. You need to make sure you do your research and number crunching, before you apply, to make sure it’s worthwhile. Anyway, thanks for the video!

[xXAnniLuvsYhuXx]

Am I the only one who gets a headache as soon as I hear the word mortgage? 😭

[tekkertruth]

If I was on the scheme I’d still rent out the property if I had to go and live with my partner. F these rules!

[matthewarena]

Really great to see you cover this angle.

[DurdyD]

This is great. thank you! You confirmed some of my thoughts. In my head this might do more harm than good buy increasing my debts. That is just crazy. I'd rather wait and save.

[omniascompany]

A great video explaining the downfalls. Thank you for doing this. Keep up the good work.

[kashhussain]

Great content. Question - say you buy your residential property through HTB and a year down the line you want to buy an investment property (BTL) is there anything in the HTB holding you back from doing that? The second property would be completely independent to the HTB while the HTB remains as my place of resident. Many thanks.

[shazzy]

Just don’t know what to do, want a mortgage paying so much in rent £1200 plus bills council tax such a waste how am I supposed to get a mortgage don’t have that much savings how do they expect people to save?

[djrphotography]

Another downside that I read is that each time you want to pay off a lump sum of the equity loan, is that you need to have the property valued. This would of course incur chartered surveyor fees (typ. £250 - £500).

[riprowley]

Nice to see someone else pointing out the pitfalls of the “Help Developers to Sell (their overpriced properties) Mortgage. I gear CMC’s could start moving on this as the penny starts to drop.
A Fellow Broker.👍

[lildoc]

Wow! Looking at the negatives, I think it is better to wait until the 'Only 5% deposit' scheme rolls out in April 2021. Any thoughts?

[yodz]

Could you purchase the property than sell it off after 5 years

[OmoladeOkaiyeto]

I can see how it can help others however I do agree with the points you raised

Hi, could you confirm please after 6 year's the interest payment is 1.75 + 1.00 + RPI so if RPI is 5% for example the interest payment will be 7.75% of the loan amount at current market value?

[Bukharian]

It’s very difficult for young professionals to get onto a property ladder, especially in London. Government ain’t helping, in fact they are ruining your home owning dreams. I guess you can give a go and go with whatever happens. Say after 5 yrs sell it, pay back gov loan and use your equity as a deposit and remortgage for new home without htb loan. New build don’t go up in value fast so when you sell you only give 40% (London) of that back to gov. It is a help but you have to play very smart.

[StephenRayner]

With all this in mind... when is it okay to go with help to buy? Based on what you've said paying of the Help to Buy loan by the 5th year should make it good enough?

[ashrafelgendy]

Can I ask what happens if I decide to go ahead with garage conversion while still under the help to bye.. Will they fine me if I do it without thier permession??will they raise any legal proceedings against me or possess the house?
I think they will charge me 20% of the cuurent value of the property when we pay off the loan which i am happy to pay as long as there is no legal proceedings. Any thoughts or advice.

[llidenton]

Am I right in saying you can pay the whole loan off before the initial 5 years if you wish? Or do you have to wait the 5 years, have the property valued and then pay it back? :)

[thisWatch]

Hi. Quick question. During the interest free period do you pay anything back towards the equity loan at all or just the mortgage to the lender?