Help to Buy winners revealed

Robyn Ashman

March 27, 2018

With the first group of Help to Buy borrowers set to start incurring interest from April research from independent mortgage broker Private Finance has looked at the areas that are in the best position to repay their loans and still profit. 

It found that borrowers who used Help to Buy in Greenwich, Wokingham and Dartford are in the best position to pay off their equity loan and still benefit from capital gains when moving.

However those in County Durham, Stockton-on-Tees and Rochdale face repaying loans that are larger than the capital gains earned in the past five years.

Those who used the scheme must repay 20% of the property value at the time of selling, rather than the original loan.

Shaun Church, director of Private Finance, said: “While most have done very well out of the scheme, our research shows that buyers in some areas, particularly in the North, are at risk of the amount they must repay outweighing their capital gains.

He also pointed out that there are also challenges for those who want to stay in their Help to Buy home but switch to a different mortgage deal, as not all lenders under the scheme offer remortgage products.

He said: “Help to Buy home owners who are wondering what their next steps should be would benefit from seeking advice from an independent mortgage adviser who can explain their options.”

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