How fees are calculated

You will begin paying fees at the start of the fourth year of owning your home, three years after your completion date.
The fee gradually increases so you pay nothing in years one to three. You then pay:
- 1% on the contribution you received from the FTBI scheme in year 4;
- 2% in year 5; and
- 3% from year 6 onwards.
The table below illustrates how the fees are calculated using an example of a 25% share on a home worth £37,500 on the day of purchase. The 2.4% yearly increase shown in the table is to account for the long-term rate of house price inflation.

Start of Year	FTBI loan amount carried forward	Percentage increase in FTBI loan amount to work out the fee	Value of FTBI loan used to work out the fee at end of year	Percentage Fee you will have to pay	Fee you will have to pay	Monthly fee you will have to pay
1	£37,500	2.40%	£38,400	0%	0	£0
2	£38,400	2.40%	£39,322	0%	0	£0
3	£39,322	2.40%	£40,265	0%	0	£0
4	£40,265	2.40%	£41,232	1%	£403	£34
5	£41,232	2.40%	£42,221	2%	£825	£69
6	£42,221	2.40%	£43,235	3%	£1,267	£106
7	£43,235	2.40%	£44,272	3%	£1,297	£108
8	£44,272	2.40%	£45,335	3%	£1,328	£111
9	£45,335	2.40%	£46,423	3%	£1,360	£113
10	£46,423	2.40%	£47,537	3%	£1,393	£116