Paying off Help To Buy Equity Loan (Without selling the property)

LJS2014

Hi All,

Just wondering if anyone can offer advice please. (I'm a newbie to the MSE Forums so apologies in advance if necessary )

I am looking into the various different ways of paying off the 20% equity loan, under the Help to Buy scheme without selling the property.

The information I have been able to retrieve so far details getting a valuation and correlating that with the sale price of the property. (I have been given a contact e-mail address to obtain more detailed information but advised it can take up to 2 weeks to get a response so in the meantime I thought I would post here and see if anybody has been in this position or knows more about it.)

I'm not in a position to pay off the full 20% with my savings currently and whilst I know I could pay 10% as a way of staircasing I would rather get the whole lot paid off. The lender advised me that the best way of going forward would be to go to another lender who works with Help to Buy in order to give me a bigger mortgage but release the 20% back to the Help to Buy Agent. The alternative was to apply for additional borrowing which is a possibility just at a considerably higher rate.

Any advice on the options the lender offered and benefits/pitfalls greatly appreciated.

Thanks in advance!
:beer:

kingstreet

Here's a link to the website of the post-sale HTB Agent;-

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

If you don't want to use savings to repay half, or all the equity loan you would need to remortgage to a new lender for sufficient funds to repay the existing mortgage and the loan all together.

The question is will you have the equity to do that? You'll find the maximum loan to value is 90%, perhaps 85% in some cases, so you'll need 10% to 15% equity on top of the remortgage amount.

LJS2014

Many thanks for such a quick and helpful response Kingstreet. I emailed the agent via the link you stated so hopefully will get a response soon. I should be ok on the equity front - just about. I guess it would depend on the mood of the valuer!