Porting a Help to Buy Mortgage

TJGriffin

Hello all,

I currently Nationwide have a help to buy mortgage with my wife. We purchased our new build home back in July 2014 for £150,000. We had a deposit of £7,500 and the government help to buy loan was worth £30,000 so we have only essentially been paying a mortgage on the remaining £112,500 for the past two and a half years.

We are looking to move to a new house and we're looking in the region of £170k - £180k. I have done the affordability calculator with a Nationwide advisor over the phone and they have told me that we are good for a house up to £215k, but I'm still a little foggy on the porting/remortgaging.

The £30k government loan starts gaining interest after 5 years so I would like it gone if at all possible and I'd ideally like to remortgage and encapsulate the government help to buy loan into a new mortgage deal. Is this possible? There seems to be lots of advice and guidance about getting a help to buy mortgage, but none with regards to getting out of one.

Any help would be much appreciated. Especially by Martin himself if he's reading this...

All the best, Tom. :money:

mparter

I'm not up on the details on exiting a HTB loan but wouldn't it simply be a case of your new mortgage being enough to cover your existing loan and the HTB loan? Also your HTB loan will be a %, not a flat value. So if your property has increased in value, then the HTB figure will also have increased (at least that's how it works in Scotland, I assume the rest of the UK is the same?)

kingstreet

If you are moving house, the HTB loan is repaid from the sale proceeds, the same as your current mortgage.

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

What is left over from the proceeds is then your deposit for the next property.

If you are buying another newbuild, you can use HTB again if you wish.

You may be able to port the rate from your current mortgage if you wish to avoid early repayment penalties. Any increased borrowing will be offered on one of the lender's current products.

You are not remortgaging as you are moving home. A remortgage is a new mortgage with a new lender to repay the current mortgage on the current property.