HTB Equity Loan and Mortgage Term

JPB123

The lender was the one that causes the highest blood pressure, but isn't called Shabbey.

I am an Independent Mortgage Adviser

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.

stalkah

Thanks Kingstreet, it would be good to get a clear answer. There seems to be a lot of inconsistency around the help to buy and a lot of time no clear answers.

JPB123

Kingstreet, that 35-year case was with Orbit.


BPHA have just approved one on 30 years, and HTB NW are fine with 30 years. I know that there's a paragraph on the PIF, but they will exceed it.

I am an Independent Mortgage Adviser

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.

kingstreet

Do they add extra text to the ATP then, as the equity loan term isn't shown in either the ATP or ATE normally?

kingstreet

Reply from one of our Orbit contacts;-

Thanks for your e-mail. The equity loan has to be repaid after 25 years or when the property is sold, whichever is sooner.

With regards to mortgage terms, if the applicant has a longer mortgage term, say 30 years, then the equity loan must still be repaid after 25 years. However, if the mortgage term is shorter, say 15 years, then the equity loan must also be repaid in 15 years. This is because under the terms of the Help to Buy equity loan scheme there must always be a first mortgage in place registered as a first charge at the Land Registry and the equity loan must rank behind it as a second charge.

MOTWYW

stalkah

Thanks Kingstreet


Think that answers my question, and is from Orbit who will be our agent

betmunch

JPB123 wrote: »

The lender was the one that causes the highest blood pressure, but isn't called Shabbey.

Not 100% sure which one you mean, but I suspect I know, and if so, it was!


However, the one that rhymes with Shabbey does not cause me high blood pressure, I find they are excellent. No-one in my office agrees!

JPB123

Sorry, was in an appt. The Homebuy agents I use have confirmed the EL term has been extended to match the mortgage term. I can't see it listed on the ATP or ATE, but I've had verbal confirmation.

I am an Independent Mortgage Adviser

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.

stalkah

Just in case anyone wanted first hand experience to this question I put my application in with a 30 year mortgage term and have been given the ATP today with 25 years to pay help to buy loan and a 30 year mortgage term

Alphabet89

Are we aware whether most lenders are open to extending to 30 years or do some hide behind the repayment being 25yrs for EL?