![[FLAG] English](/gfx/flag_en.gif)
Languages...Repayments
When you bought your home through the FTBI scheme your mortgage and any deposit you paid was set at a percentage of the total purchase price of the property. The financial help you received through the FTBI scheme made up the remaining percentage of the property value.
If you sell your home you must repay the FTBI loan. The amount you pay back will be calculated on the sale price of your property. It will be calculated by multiplying the sale price of the property by the percentage of the property the FTBI loan is worth. For example if you bought your home with a 70% mortgage and a 5% cash deposit you will of received help on 25% of the purchase price of the home. When you sell (if you have made no other repayments) you will need to repay 25% of the amount you sell your home for. This is known as a repayment. If you want to repay the loan without selling your home please see the section on staircasing.
If you bought your home for £200,000 with assistance from FTBI of £60,000, the FTBI equity share contributed would be 30% of the full market value of your home.
When you come to selling your home and repaying the equity contribution, you would pay back the 30% equity share of the full market value or 30% of the sale price (if the sale price is different from the valuation price, the repayment will be based on 30% of the higher amount). For example, if the home you are selling is valued at £220,000 and your buyer meets this valuation, you would pay back a 30% equity share of £220,000. This would be £66,000.
Repayment in a Falling Market
If the value of your property has fallen significantly you may find that you are unable to pay back both your first mortgage and the FTBI loan you received in full. In this scenario the Homes and Communities Agency may take a reduced loan amount to ensure that this does not prevent you from selling your property. If you cannot pay the FTBI loan back in full, the amount you will pay is calculated by subtracting the outstanding balance on your first mortgage (excluding early redemption penalties) from the HOP agreed sale price of your property.
For example, if you purchased your property for £160,000 with a mortgage of £115,000 and a deposit of £5,000 you would have received an FTBI loan of £40,000 (25%). In a scenario where the value of the property had dropped to £120,000 and you were to sell for this amount the FTBI loan you received would now be worth 25% of £120,000 which is £30,000. Supposing your mortgage still had an outstanding balance £105,000 this would mean you were unable to pay back both your mortgage and the FTBI loan in full. In this case the amount you would have to pay back on your FTBI loan would be reduced. The amount you would have to pay back would be calculated by subtracting your outstanding mortgage balance (excluding early redemption penalties) from the sale price. In this case this means you would pay back £15,000 rather than the full amount of £30,000.
