Remortgage - Help To Buy - Advice?

MarcJames87

Two years ago I applied for a mortgage through the help to buy scheme.

The property was £196,000 and I had to put down a 5% (£10,000) deposit, while the government assisted with the other 20% (£40,000), which is 0% for another three years.

My two year fixed deal is now coming to and end and I have an appointment on Tuesday with the help-to-buy agent.

My first question is: - My property is now worth at least £260,000 and I wanted to know would it be possible to get the full mortgage amount on my own and pay back the government? I know the governments share still has 3 years left on 0%, but I'm concerned the longer I leave it the more profit the government will take in the long-term.

My second question: - When applying for a larger amount to cover the equity loan, do the banks take into account how much the property is now worth? I'm just a little worried they may still not lend me the full amount as I only earn £35,000 a year.

Any information would be much appreciated.

Marc

brit1234

MarcJames87 wrote: »

Two years ago I applied for a mortgage through the help to buy scheme.

The property was £196,000 and I had to put down a 5% (£10,000) deposit, while the government assisted with the other 20% (£40,000), which is 0% for another three years.

My two year fixed deal is now coming to and end and I have an appointment on Tuesday with the help-to-buy agent.

My first question is: - My property is now worth at least £260,000

I only earn £35,000 a year.

Just out of interest what have you done to to add £60,000 in equity to your property, have you added an extension etc? Typically new builds fall in value after bought and we are in a housing downturn now, not sure how long it will last. You may not have as much equity as you think, be careful and save hard to pay off the equity loan. As prices fall you will have less to pay on the equity loan, so if prices fall for 5 years your equity loan will be greatly reduced.

MarcJames87

Thank you for your advice. That estimate came from Halifax direct after I wrote the post. They are now saying that the property is worth £265,000-270,000. I live in an Outer London borough in a 2-bedroom flat. I still feel to this day that my property was undersold and I got a good deal.

I spoke to the mortgage agent who confirmed I should really get the full mortgage but only if it's affordable.
I'm currently in the process of looking into the rates, but I will keep this post updated.

MarcJames87

Also I live near to Crossrail so prices should hopefully continue to rise in the coming years.