Homebuy remortgage difficulty

moneysense123

I was womdering if anyone had any advice or has experience of remortgaging following homebuy. We bought out house at the end of 2009 wherby the builder/government each contributed 10% to pay a 20% deposit. This was interest free for 5 years and now we have the option to remortgage for the whole amount (deposit and remaing mortgage) or keep the deposit as a loan on a low interest rate and have a mortgage for the rest. If we did the latter technically i thought it would open us up to better mortgage rates as with what we gave paid off it would be 71%LTV. We consulted with a financial advisor and he has said that he couldnt find any banks that support this scheme. Does anyone know which banks will as we are gettng worried now. Many thanks in advance

Thrugelmir

Who is your current lender?

moneysense123

Rbs at the moment i rang them and they didnt seem to understand the scheme really frustrating

kingstreet

You have a mortgage on a shared equity scheme, similar to the current HTB - Equity Loan scheme.

There is a second charge over your property and you will need to contact HOPS for permission to remortgage, if you leave the equity loan in place, or to arrange repayment of the loan if you go that route.

Choice of lender will be determined by which route you decide on.

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

ReformedShopper

moneysense123 wrote: »

I was womdering if anyone had any advice or has experience of remortgaging following homebuy. We bought out house at the end of 2009 wherby the builder/government each contributed 10% to pay a 20% deposit. This was interest free for 5 years and now we have the option to remortgage for the whole amount (deposit and remaing mortgage) or keep the deposit as a loan on a low interest rate and have a mortgage for the rest. If we did the latter technically i thought it would open us up to better mortgage rates as with what we gave paid off it would be 71%LTV. We consulted with a financial advisor and he has said that he couldnt find any banks that support this scheme. Does anyone know which banks will as we are gettng worried now. Many thanks in advance

If you want to re-mortgage and still utilize the loan, then Barclays/Woolwich will do so, but you would be best going through a broker to apply as inhouse advisors are still playing catch up with hTB, equity loan schemes and could scupper your application

moneysense123

thanks for your replies. Already contacted hops they have sent details of how to staircase the loan etc. I agree we want to use a mortgage broker but the one we were with said they couldn't find any lenders to support the scheme. Although when I spoke to the people to send out the home buy details they said that they had had loads of applications recently to commence payment of interest on the loan as opposed to adding onto their current mortgage so there must be a few lenders out there its really confusing??

ill try barclays, has anyone else managed to get their new mortgage on this scheme when the loan payments have started?

Many thanks

moneysense123

hi all, still struggling i have contacted a number of banks and they don't really seem to know what I'm talking about. The frustrating thing is is that when i spoke to hops to seek advice they said that there have been loads of applications coming in for people who are on the same scheme as us to start paying interest on their loan to keep it separate from their mortgage meaning there must be providers out there!!!! the financial advisor still has no clue. Going to set up a meeting with rbs….

has anyone who has been on the same scheme secured a mortgage with someone to keep the mortgage and loan separate after the 5 years, if so which banks have you used and were you with them before, Thank you

kingstreet

An experienced newbuild mortgage broker would be your best route for this. General brokers have little involvement in these schemes and may not want to take on such a case.

chocoholicqueen

I'm on a slightly different scheme to you but i have always stayed with satander as no other bank want to know me because of the second charge, even though we only have a small mortgage compared to the value of the house. In fact i have just been accepted onto another fixed rate deal. Definately give them a try.