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Help to Buy Advice Please - 2 minutes
Makkusu
Posts: 100 Forumite
Hi everyone,
Theoretically speaking, if at the end of 5 years we have £80k equity in our property but an unpaid Help to Buy Equity Loan of £45k, what options do we have to avoid the interest?
We're currently thinking just sell, repay and move into a new place. I'd like to know of other possibilities too though e.g. re-mortgage (don't know really what this means I'll be honest).
Any and all help is much appreciated!
Theoretically speaking, if at the end of 5 years we have £80k equity in our property but an unpaid Help to Buy Equity Loan of £45k, what options do we have to avoid the interest?
We're currently thinking just sell, repay and move into a new place. I'd like to know of other possibilities too though e.g. re-mortgage (don't know really what this means I'll be honest).
Any and all help is much appreciated!
0
Comments
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Is any of the the equity arising from capital appreciation in the value of the property?0
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You can ask your current lender for additional borrowing to purchase the remaining equity or you can approach a new lender for a new mortgage sufficient to repay the old mortgage and the equity loan at the same time.
The latter is a remortgage.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 -
Seems like everyone wants the loan interest free but they don't want to pay 1.75%I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
@Kingstreet thank you for the input for some reason I couldn't find any straight forward advice on the internet. it's just our safety net but it's gold to know there are other options.
@amnblog The interest free loan is resulting in £8k less interest paid at the end of year 5 and a greater capital portion paid off. Plan is to minimise interest across board and put down a 50% deposit in year 6 or, seek other remedies for exit.
Thank you again.0
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