Help to Buy Equity Loan

Audiman7

Great!

Thank you for all the help, it's really appreciated.

Audiman7

Was just reading through the Halifax Intermediaries and noticed something under the property section of the lending criteria.

With regards to Shared Equity (including Help to Buy) it states:

"We do not allow any remortgage applications, where there is any element of debt consolidation."

Does this mean after 5 years if you wanted to remortgage and pay off the equity loan, that Halifax would class it as debt consolidation and decline you from remortgaging with them?

kingstreet

No idea. Sorry.

Who do you plan to use for your mortgage now?

They may be willing to offer additional borrowing, instead of a remortgage to another lender.

Audiman7

I was looking at Halifax or Santander, but Santander will only lend for a maximum 25 years on Help to Buy.

Natwest say they do not currently offer a remortgage product on shared equity, but obviously this could change.

Nationwide say they cannot guarantee to make additional funds available at a later date in order to repay the loan. Which is fair enough as there are no guarantees.

It's just the way they seem to be wording it makes me worried that in five years time, if I want take out additional borrowing or remortgage to repay part or all of the equity loan, they won't allow it.

Obviously I know I may be worrying over nothing, as in five years time when lots of people are coming to the end of the five years they may have more options available.

brit1234

Audiman7 wrote: »

Obviously I know I may be worrying over nothing, as in five years time when lots of people are coming to the end of the five years they may have more options available.

I don't believe they will. They haven't this year for the 2008 shared equity launch, people still in trouble.