Remortgaging a new build with help to buy

lcfcstephen

I would like to double check something (more like triple check, but I get very paranoid) I am about to complete on a house purchase with a help to buy loan. The house price is 133,995 and I have put down 40,000, meaning the mortgage is 67,195 and the equity loan is 26,799. I know that I need to get the help to buy agents permission before remortgaging (and when I do I'll want to include that bit of the loan in my mortgage - effectively buying out the government) So my question is this - when I remortgage I just need to take a new mortgage of whats left on my old mortgage plus the help to buy loan (20%). Is that correct? So any house price varation doesn't come into it apart from with the size of the help to buy loan?

lcfcstephen

So my main question is basically. If my house price increas by £1000 my deposit for remortgage would increase by £800 and the help to buy loan would increase by £200. and so I would be remortgaging more than I had before, but with a bigger deposit.
And if the house price decreased by £1000 my deposit would decrease by £800 and so would my loan by £200 meaning that I have more to pay off when including the loan but a smaller deposit.
Is that correct and does it make sense?

kingstreet

The equity loan is always based on the property value for redemption.

When remortgaging, you have to ensure you have enough equity in your home for repayment of the existing mortgage, the equity loan and that you don't exceed the new lender's maximum loan to value.