Has anyone used the government help to buy scheme?

[maneandfeathers]

If so please could you explain to me how it works?
So for example if I put 5% down the govt put 20% to total 25% but do I pay a mortgage payment and a loan payment?
Has anyone any examples of how much they are actually paying per month?
Would you do it again?

Thanks!

We did it, sold a month ago and are doing it again shortly. For the 1st 5 years you only pay the mortgage repayment -we always knew wed only be in our first house about that time anyway. The new house is 224k. That's an 11k ish deposit. 45k h2b loan and 167k mortgage. We will be overpaying the mortgage with the intention to remortgage after 5 years and pay off the h2b portion. We are in an area where prices are pretty stagnant and wont really rise or drop in that time.

Thankyou Q, so you’ve not paid any loan in those 5 years?
Did you have to apply to the government like a mortgage?

It’s an option we are looking into, it means we can afford a much bigger house than we thought we initially could but there’s obviously the concern of paying it back one day!

Yes there are no payments of the h2b portion for 5 years. You apply for a h2b mortgage rather than with the government. Not all banks offer them, our was with Halifax. We sold after 3 years so paid back the loan plus 20% of the equity before having to start paying the loan.

Yeah so 1st house we bought for 160k. That was a 120k mortgage repaid at £500 a month. Help to buy of 32k. Deposit of 8k. We sold for 155k in January - paid back 31k of that to h2b. 100k mortgage. And were left with equity as deposit for next house. This one will be long term home, 2 kids and once the 5 years is up baby will be out of nursery fees and fees up £600 a month towards covering the extra repayments. We arent overstretching, it's just enabling us to do the move now rather than in 5 years time when older ds would be settled in schools and upheaval may be more considerable

We used it as first time buyers. Put down 5% deposit and borrowed 20% from the government so got a help to buy mortgage for 75%.

The loan is interest free for 5 years so you dony pay anything on that. You can pay off the loan in 10% increments of the value of the house (the percentage loan is always of the current market value, so if the value if the house increases, the loan amount increases). After 5 years you start paying interest (non repayment) of the government loan. It starts low but increases a fair amount each year. If you sell the house you give 20% of the sale to the government. If you dint it has to be paid back within 25 years.

We decided to mortgage to cover the loan so all we own is the mortgage now and dont owe the government anything.