People think I am crazy not to take advantage of the upper limit of the help-to-buy equity loan, but I hate the idea that the amount I could owe someone might keep rising (even though it could fall as well … but hopefully not). Should I take advantage of the equity loan? MWA I think you are right to be cautious about taking out the maximum 40% equity loan just because you can. Although the equity loan is interest-free for the first five years, if you haven’t managed to pay it off by the start of the sixth year, interest payments on the equity loan will kick in. If you went for the maximum 40% equity loan on a property costing the maximum £600,000 in London, this would mean interest would be due on £240,000.

Source: The Guardian January 06, 2020 06:56 UTC