Remortgage, Borrow More, Help to Buy

b4bod

Hi Everyone,

So. My wife and I have a house we got through help to buy. The value of our property has increased quite quickly, and we'd like to borrow more so we can make some home improvements etc.

Our mortgage is with Nationwide, but when I've tried to apply online to borrow more, it says I can't do it online if we have shared equity. So my initial question is, does this mean we can't do it at all?

Second question. If we were to remortgage and borrow more, we could be paying £100 a month less, so is that a doable thing, or is it one or the other (Remortgage or borrow more)?

Basically, 1st choice would be to remortgage and borrow more, 2nd choice would be to just borrow more.

Please excuse my ignorance, as this is our first house, and I really dont understand how a lot of this stuff works.

B

kingstreet

You cannot increase the mortgage unless you repay the HTB loan.

You can remortgage £ for £ and retain the HTB loan but cannot borrow more.

b4bod

Thank you for the speedy reply.

Is that definitely the case? I've seen conflicting info by Martin suggesting whether to pay off the HTB Loan or use it for home improvements.

alex_163163

This is quite a useful website for those who already have a Help To Buy property. Have you looked on here before as the answers might be here?
http://www.myfirsthome.org.uk/iwantto/remortgage/

If you do remortgage, there is an admin fee payable to HTB to be allowed to do this. See tariff of charges on above link.

Also, just check the home improvements you intend to do are permitted under the HTB agreement. If it's just redecorating, new kitchen and bathroom etc then that should be fine. But extensions, knocking walls down etc might not be permitted?

kingstreet

b4bod wrote: »

Is that definitely the case?

Yes.

It is.

http://www.myfirsthome.org.uk/iwantto/conduct-home-improvements/

'Home improvements' first.

By home improvements we mean significant structural changes to adapt your home for a disability. Under the terms of your loan certain types of home improvement are not permitted. If you wish to discuss what home improvements may be permitted, please contact the Customer Service team.

Decorating, kitchen/bathroom re-fitting, solar panel installation or window replacements are not considered home improvements and are permitted without our approval.

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

Now remortgaging.

Remortgaging is the term used for switching your mortgage lender without increasing your borrowing.

The new mortgage must be no more than the existing loan with the main lender mortgage. The exception to this is if you are going to use the additional borrowing to repay your equity loan.