Help to Buy, remorgage to gain back share

Andrew03

Hello,

I'm a first time buyer looking to purchase a new-build property in Scotland, and therefore using Help to Buy Scotland. This will allow a 20% deposit contribution from HTB (~£40k).

Is it possible, say 3 years from now to remortgage the property, and borrow more money from the lender to pay off this £40k? One of my aims would be to pay off the HTB as quickly as possible - would remortgaging to achieve this be allowed? I would be grateful if you could point me in the direction of any HTB material with reference to this.

Thanks!

welshwizard1927

Yes, but remortgaging is subject to:

1) Having enough equity in the property to absorb the value of the HTB loan; and
2) Products with a high enough LTV to absorb the loan (for arguments sake, if the property value remains the same in 5 years time, you'll need to find a 95% LTV mortgage).

Lots of unknowns with HTB. A lot riding on the assumption that there'll be sufficient products in the market at the time of remortgage which will enable the HTB loan to be bought out/carried over with a new mortgage product. This is all, of course, notwithstanding the additional risk that property values could go down...