Help to buy and payment of equity loan

SuzyRed

:j

I have been in my new build property for 6 months and extremely happy. As I like to have plans for all events I have been thinking about my equity loan (I took the full 20%.)

Now some things have changed in my life and I am considering selling an asset which would enable me to pay the equity loan off in full. Or in 2 chunks.

How would I go about doing this? Do I approach the Help to Buy people.? Should I wait till the 5years interest free is over? My asset may increase further in price if I wait.

They are beginning a further building phase on my site - and I assume this will affect the value of my house further, as well as the depreciation of it being new. Who values the house and at what point would it be best to get it done? After the five years, or as soon as I am able to pay it off.?

I intended to keep my asset till retirement but it's not really giving me any pleasure and if I could pay off the equity loan I could concentrate on over paying my mortgage.

Sorry if these questions seem stupid and I realise I am extremely lucky (though I worked very hard to buy the asset initially.)

Many thanks in advance.

Thrugelmir

What rate of interest are you paying on the mortgage?

Kell4life

You can pay the loan off at any time as 10% or the full 20%, and if it were me I'd personally choose to pay it off as soon as I could.

It's hard to guess but are prices in your area going up or down? If prices are going up you'll owe more equity back to HTB, but if they are going down it will be less.

I'd get in touch with your Help to Buy agent regarding how they would value your house if you were pay back the equity loan now.

My husband and I are in the process of buying a newbuild with HTB, and we did discuss if we came into a sizeable amount of money in the next few years that we'd pay the equity loan back.

SuzyRed

Thrugelmir wrote: »

What rate of interest are you paying on the mortgage?

2.84%

I would guess that as more new houses are built my generation will depreciate. However the area is having a vast amount of money spent on it and long term I expect it will be a desirable place to be.

My plan originally was to overpay my mortgage as much as possible and hope to remortgage to cover some or all of the equity loan after my 5 year fix.

Thrugelmir

Rather than buy the equity now. Another option could be to overpay the mortgage instead. Your could then remortgage at a later date to buy the equity out.

SuzyRed

Thrugelmir wrote: »

Rather than buy the equity now. Another option could be to overpay the mortgage instead. Your could then remortgage at a later date to buy the equity out.

Assume this would work out as more interest saved? Think I can overpay by 10%. Will have to do some calculations!

kingstreet

Kell4life wrote: »

You can pay the loan off at any time as 10% or the full 20%, and if it were me I'd personally choose to pay it off as soon as I could.

It's hard to guess but are prices in your area going up or down? If prices are going up you'll owe more equity back to HTB, but if they are going down it will be less.

I'd get in touch with your Help to Buy agent regarding how they would value your house if you were pay back the equity loan now.

My husband and I are in the process of buying a newbuild with HTB, and we did discuss if we came into a sizeable amount of money in the next few years that we'd pay the equity loan back.

There is a separate HTB Agent for post-sales issues, Metropolitan. Here's a link to the website;-

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