remortgaging house with government first buy scheme

lildan1

Hi all

We bought a new build house last year. We have the next 5 years to pay off as much of the 65k the government loan as possible. Does anyone know if its possible to remortgage after a few years in order to pay that off and incorporate it into the main mortgage? ?

Dan

ValHaller

Yes, it would be possible to remortgage, subject to meeting the criteria for the mortgage

• Sufficient income for the multiplier to cover the borrowing you require
• Few or no other financial commitments - if you take out finance for a car, the payments will reduce your borrowing potential
• Good credit
• Sufficient Loan to Value in the property

Take a careful look at the interest rates - it may be better to overpay on the mortgage if you can do this without penalty.

And if you have something big to buy like a car, it may be better to put your cash to that rather than pay down the mortgage and take out finance - because you will effectively be borrowing at a higher rate than either the mortgage or the government finance, just to reduce you borrowing on the house