Homebuy direct remortgage advice

Rickster1978

Nearly two years ago I took out a homebuy direct mortgage with natwest. I'm now at the end of my fixed rate period and can look at other options.

What has everybody else opted for at the end of their fixed period?

What are the best deals out there now for people like me?

kingstreet

To be able to remortgage to a new lender, you'll need a deed of postponement from the second charge holder. This prevents the second charge becoming a first charge when the old mortgage is repaid by the new one.

Alternatively, you can ask NatWest what customer retention products it offers for customers like you who are not moving home but are coming to the end of an offer.

Jotaylen_2

I have been on the homebuy scheme for 4 years now and out of my fixed term with nationwide. My property has increased value by 50K and we have paid 15K off our mortgage. I now want to remortage and borrow more for home improvement do you know of any lenders who have authorised this?

Thanks

kingstreet

It isn't the lender.

It's the second charge holder you need to talk to first.

Then you need to sort out the remortgage options. If the second charge holder says no and they may realistically do so, you'll waste your time on lenders for nothing...

Government schemes;-

http://www.myfirsthome.org.uk/

jotaylen

sorry im doubling my efforts here. Housing association have said I can borrrow more. I just cant find a mortgage lender who will allow me to remortgage and borrow more then i currently owe.

kingstreet

Housing Assocation?

Is this shared equity, or shared ownership? HomeBuy was originally the term used to describe shared equity, but is now the shared ownership framework.

Please clarify.

jotaylen

Its not shared ownership, they do not own my house or any percentage of my house. The housing association manage the equity loan scheme on behalf of the government in my area.

Its exactly as you describe the housing are the second charge lender, I simply pay them interest on my loan. The loan expires in 25 years at which time i would need to repay in full. Does that make sense?

kingstreet

Ok.

It's shared equity (SE), which is what I thought in the first place.

Once you have completed, the responsibility for the running of the SE scheme passes from the HCA HomeBuy Agent near you, to the Agent with the contract for post-sales issues, Metropolis in London.

You need to address any queries about remortgaging etc to them for them to issue you with the relevant docs/information pack. This is the website and at the correct page for HBD;-

http://www.myfirsthome.org.uk/content/1/114/homebuy-direct.html

If you are not repaying the equity loan, you will need the HCA HBA's permission to remortgage, via a deed of postponement. This is included in the information pack and you have to get the lender's approval to accept it pretty much at the outset.

As I said before, finding a lender is not the priority here. Getting agreement from Metropolis is the first hurdle. Get the info pack and work on from there.

jotaylen

Thank you I will do so now.

Thanks

Johanna

jotaylen

morning,

So they have come back and said they will need to approve the loan and issue a deed of postponement but i should go to the lender first to see if they would lend me the money required. i can only borrow up to 75% of the value.

Any idea which lenders are likely to loan more then the current outstanding mortgage? Nationwide said no :-(

kingstreet

The brokers on here won't name lenders for fear of being considered to be giving advice. I suggest you speak to a whole market broker for detailed recommendations.

The HCA HomeBuy Agents have a list of approved brokes familiar with such cases. A list of the Agents is in the back of the HTB Guide;-

http://www.homesandcommunities.co.uk/sites/default/files/our-work/help_to_buy_buyers_guide_sept_2013.pdf

and a quick call to your local one, or a look on their website should enable you to get the broker list.

As an example, our local HCA HomeBuy Agent is Orbit and its panel is listed on its website.