Shared Equity (Bovis Jumpstart) Question

badadd

Hello All,

I have been an avid reader of the forums for a while, but finally joined up and this is my first post :j

I live on my own in my Bovis home, which was the value of £124,950 when I moved in. To get me on the property ladder, I needed to use their shared equity scheme aka Jumpstart. I am now a few months away from being in my home for 5 years. At the 5 year point, I have to start paying interest on my Jumpstart loan.

I would like to get rid of my loan asap.

I will be honest - I haven't been saving in order to pay of this loan. When taking the loan, I was advised by Bovis that what most people will do, is re-mortgage and if their is equity, pay off the loan.

I am at a cross road and need to make a decision as my mortgage has come to the ends of it's term and I have 2 weeks left of the current term to decide what I want to do, I would prefer to go for a fixed mortgage for 2 or 4 years, both products Halifax have offered me.

The problem is, my mortgage advisor has indicated I will not be able to re-mortgage mid terms, there is the option of an "advance" but he does not feel this will cover the loan.

Am I being unrealistic to assume that I could re-mortgage now (ASAP) to free up any equity to pay off the Bovis loan now, before my mortgage is due for renewal, or is this process likely to take months, by which time my mortgage term will have come to an end?

I have left Bovis a voice mail several days ago about my Jumpstart loan, but no one has come back to me.

Thank you in advance.

kingstreet

Are you getting independent mortgage advice, or is your advisor a Halifax employee?

A remortgage is a new mortgage from a new lender to replace your old one on the same property.

Your current lender cannot offer you a remortgage, only a further advance or additional borrowing.

Your options are different in each case. Please clarify.

badadd

Apologies:

1. Yes I am getting independent advice, using a mortgage advisor that Bovis recommended when I purchased my house.
2. I was intending on staying with my same lender, the Halifax. It was explained to me that because of the shared equity scheme, some lenders would be "difficult" in "re-mortgaging". Also, the rates I have been offered by the Halifax seem competitive.

kingstreet

Okay, so you are looking at a product transfer with Halifax, leaving the equity loan as it is, or looking to remortgage to another lender to repay the equity loan?

It would be impossible to remortgage without repaying the equity loan as you would need a deed of postponement from the second charge holder to make that possible.

So the burning question is, is your property worth enough to repay your existing mortgage, repay the equity loan and leave enough equity to fit the new lenders loan to value limit, say 90%?

mobileuser

What did you decide to do? I'm now in a simlar situation.

Many thanks,