Help to Buy

aguynameddarryl

Hi guys,

Looking for some advice - I've got a H2B mortgage through Halifax and the boss and I are considering dumping a lump sum into our mortgage.

Now, can we use that lump sum against the government part of our mortgage and, if we can, is there an advantage to doing that over the Halifax's element?


Thoughts?


Thanks!

kingstreet

You can repay the equity loan in one chunk, 20% of the current property value, or two 10% chunks at different times.

You need to visit the site of the post-sales HTB Agent to obtain details;-

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

Timing of repayment very much depends on when you will start to make your 1.75% year six fee payments and if you think your property value has changed as you will be paying back based on the property value at that time, not at the time you purchased the property.

If this is preferable to overpaying your mortgage, that's impossible for anyone to say without a detailed analysis of all the circumstances.

aguynameddarryl

Ahh, so I can't just drop a £5k bomb on my Government 20% then?

I suppose the aim of the game is to now overpay into the mortgage and clear 30% of that and then remortgage to cover the govt's wedge.

Sound about right?

kingstreet

It would appear logical if you don't have 10% of the value of the property at the time you want to overpay.