Help to Buy Equity loan Question...

Dolly123

We are going to be looking to pay off as much of our equity loan within the 5 years as we can, can we pay off the equity loan in chunks throughout the 5 years or are we best making overpayments on our mortgage?

alex_163163

Go to https://www.myfirsthome.org.uk. It tells you how you can pay it back and the fees involved to do so. This might help you decide what is best way to go for you.

Thrugelmir

To redeem part of the equity loan. An independent valuation will be required on every occasion. This will incur administrative costs. You would be better off making overpayments on the mortgage. With the objective of remortgaging the property and repaying the equity loan in one transaction. At a later date in the future.

Dolly123

Brill thanks

amnblog

You can only repay 10% of the equity at a time based on a current RICS valuation.

getmore4less

Thrugelmir wrote: »

To redeem part of the equity loan. An independent valuation will be required on every occasion. This will incur administrative costs. You would be better off making overpayments on the mortgage. With the objective of remortgaging the property and repaying the equity loan in one transaction. At a later date in the future.

That depends on a number of factors a key one being HPI, if the value is going up faster than all the costs then sooner can be better even if it needs multiple transactions.

kingstreet

Just to add to what amn has said, 10% means 10% of the property value, not 10% of the equity loan.

Therefore, a non-London HTB equity loan can be repaid in no more than two chunks and you cannot make overpayments like you can to a mortgage.

Dolly123

Ok thats great thanks everyone that really helps, mortgage over payments it is until I come into £45k twice within the next 5 years, chance would be a fine thing!!