Help to buy query

[theinvisablewoman]

Can I ask whether anyone knows what the scenario would be if property prices crashed when you had bought with a 40%help to buy equity loan and you want to sell ? Is your outstanding mortgage top sliced off the low market valuation before the help to buy payback is calculated ? Or is the Help to Buy repayment simply 40 % (if London scheme) of the new valuation and you have to settle the mortgage too. Home Owners Alliance site says former but govts own docs not explicit on that point. Thank you all !

My son is looking at doing this but is worried abou

Some messages been deleted?

You’re correct, the equity loan is a percentage of the value of the property, so if the property price were to fall and you needed to sell for less than you purchased for, the equity loan part you owe would reduce. E.g 20% of £80k instead of 20% of £100k. So it’s helpful in that respect - flipside is that they profit from any increase in property price too!