Help to buy advice

[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 !

I also posted in investments

If the London scheme is the same as everywhere else, when you sell you will need to pay back what you owe. You will need to pay back 40% (I assume, I'm using the 20% scheme so for me it'll be 20%) of the house price back to the government, if the price is lower than what you bought it for then you will pay back less than what they gave you to buy. But bare in mind you would need to be able to pay off the rest of your mortgage with the 60%.

That is my understanding anyway!