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Help to buy (20% Equity Loan) - mortgage implications?
breakingbad
Posts: 130 Forumite
Hi all, few questions about Help to Buy (the original, 20% equity loan version)...
If we take out a 75% LTV mortgage now, at a fixed rate for 5yrs. In 5yrs time, will I be able to remortgage with all or some of the 20% equity loan still outstanding?
Also, our mortgage advisor has done a quote for us with Nationwide over 30years (at our request). However, Nationwide's website states "The mortgage term cannot extend beyond the date that the repayment of the equity loan first becomes due. This only relates to the repayment of the equity loan capital and not the interest." - Does this mean we will only be able to get a 25year term with Nationwide?
Thanks,
If we take out a 75% LTV mortgage now, at a fixed rate for 5yrs. In 5yrs time, will I be able to remortgage with all or some of the 20% equity loan still outstanding?
Also, our mortgage advisor has done a quote for us with Nationwide over 30years (at our request). However, Nationwide's website states "The mortgage term cannot extend beyond the date that the repayment of the equity loan first becomes due. This only relates to the repayment of the equity loan capital and not the interest." - Does this mean we will only be able to get a 25year term with Nationwide?
Thanks,
0
Comments
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Yes you should be able to remortgage but will need the agreement of the HTB agent.
You cannot get a mortgage past 25 years if that is the length of the mortgage on your ATP. The HTB agent will only allow 30 years if there is a financial need, but you would have to submit your ATE again!0 -
Additional borrowing to staircase or absorb the 2nd charge will probably be welcomed by the post HTB agent. Remember you will only be able to make 2 transactions to clear it.
Where you may struggle is, in a post MMR environment, obtaining additional funds from the lender. This will depend on affordability and if the value of the property still provides suitable security for lending the 20% to get rid of the 2nd charge. There will probably be a few lenders willing to though.0 -
You cannot get a mortgage past 25 years if that is the length of the mortgage on your ATP. The HTB agent will only allow 30 years if there is a financial need, but you would have to submit your ATE again!
Our ATP states the approved mortgage term is 30years, so I presume we're ok applying for a 30year mortgage?0 -
Whoever submitted the PIF has told the HTB Agent the mortgage term is 30 years, so yes, you now need to apply for a 30 year mortgage.Our ATP states the approved mortgage term is 30years, so I presume we're ok applying for a 30year mortgage?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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