First-time buyers who used the Help to Buy scheme could see monthly bills soar by up to 55% as they are hit by interest rate rises and government loan repayments, experts have warned. The equity loan scheme is interest-free for the first five years. Homeowners coming to the end of their five-year periods will see their costs jump in three ways. The Bank of England interest rate is now at a 13-year high, which means that their remortgage costs will be higher. The rate on this loan will then increase quickly, as inflation has just hit a 40-year high. While the interest charged on the loan is based on the amount borrowed at purchase, the repayment cost is calculated based on the property's current value, with house price growth having been extreme
The Daily Telegraph
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