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Should I buy out equity loan?
blues
Posts: 275 Forumite
Hi, I bought my flat in 2005 for £130,000. I received an interest free equity loan from the government key worker scheme for £50,000 and I took a mortgage for £80,000.
I now want to remortgage and move onto a repayment mortgage as I have been on an interest only mortgage up until now. I am looking to add 10k onto the mortgage as I need to extend my lease which is now below 70 years. I have savings in an ISA.
My question is this, should I remortgage on the £90,000 and continue to have low mortgage payments meaning I can save a substantial amount each month OR should I look to buy out of the key worker scheme and potentially be taking on a mortgage of £150,000. The current value of the flat is £180,000. Am quite confused about this-thanks for any advice!
I now want to remortgage and move onto a repayment mortgage as I have been on an interest only mortgage up until now. I am looking to add 10k onto the mortgage as I need to extend my lease which is now below 70 years. I have savings in an ISA.
My question is this, should I remortgage on the £90,000 and continue to have low mortgage payments meaning I can save a substantial amount each month OR should I look to buy out of the key worker scheme and potentially be taking on a mortgage of £150,000. The current value of the flat is £180,000. Am quite confused about this-thanks for any advice!
0
Comments
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The rules for remortgaging and raising more money under shared equity are complicated and often permission is refused. Contact Metropolis for information;-
http://www.myfirsthome.org.uk/
0845 470 0121.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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