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Purchasers, many of whom were first-time purchasers who enrolled in the government's Help to Buy Equity loan program in the early days, will soon begin to charge interest on their loans. This programme was established in April 2013 to help people with small contributions to buy a new home and will run until 2021.
For the first five years, the federal authorities lend another 20% of the real estate value without interest, so that purchasers only need a mortgages for the other 75%. Whoever buys in London can request a federal credit of up to 40% of the real estate value and therefore only need a 55% mortage once they have made a 5% down payment.
At the end of the five-year interest-free deadline which it provides from April for those who requested the aid shortly after its start, interest of 1,75 % shall be payable on the aid. Interest rates will rise by the annual RPI plus 1% each year.
It is expected that in April there will be tens of millions of homeowners starting to pay interest on their loans, and the number of people affected will increase over the years. There are various eligibility opportunities for those who are about to pay interest for their assistance in purchasing equity loans.
So the first is to do nothing and just begin to pay back the interest you owe. They only pay interest on the equity loans and do not pay back any principal. This is because the amount to be repaid is now 20% of the value of your home instead of 20% of the initial value, which means that the UK has a stake in any housing cost increase since the purchase.
This is also the case if your real estate has lost value, so in this case you will repay a smaller amount to the goverment than the initial amount of credit.