Help to Buy Equity Loans guide discussion

sal_III

Target are the pits, the forum is full of horror stories by people trying to communicate with them regarding staircasing/redemption.

The £6.55 might be partial payment for the days remaining until the day in the month they will use for the payments. For example you took the equity loan on 27th, but they want to run the payments on 1st each month so they only took pro rata for 3-4 days in the first month.

Give it 1 month after this initial payment and see how much they take out. It will be faster than any response you can hope to get from them.

laura_lou84

Has anyone remortgaged and settled their loan? Unsure on the T&Cs if it must be a survey separate from the mortgage company's valuation?

kingstreet

laura_lou84 wrote: »

Has anyone remortgaged and settled their loan? Unsure on the T&Cs if it must be a survey separate from the mortgage company's valuation?

It is. Get yours done first.

Many lenders' remortgage valuations are non-disclosed, so you won't get a copy.

Target only gets yours on a remortgage, so don't worry about one being higher/lower etc.

gingerblah

Hello all,

I would like to ask for advice on my options for my Help to Buy Equity Loan.

Next July the 5 years interest free period for the Equity Loan will end and we will need to start paying interest. We will get a new mortgage product in July for our existing mortgage.

Due to all the uncertainties of Brexit I am feeling apprehensive about taking on more debt by remortgaging and taking on the Help to Buy Equity Loan. I am worried about the possibility of the house values going down and being left with an even bigger mortgage on a house that is not worth as much...... I know that no one can predict what will happen but would I be in a better position to take on the equity loan or to pay the interest on the loan and when everything settles make a decision. As then I could maybe take on a second mortgage just for the equity loan?

Look forward to your reply,

Ann

silvercar

gingerblah wrote: »

Hello all,

I would like to ask for advice on my options for my Help to Buy Equity Loan.

Next July the 5 years interest free period for the Equity Loan will end and we will need to start paying interest. We will get a new mortgage product in July for our existing mortgage.

Due to all the uncertainties of Brexit I am feeling apprehensive about taking on more debt by remortgaging and taking on the Help to Buy Equity Loan. I am worried about the possibility of the house values going down and being left with an even bigger mortgage on a house that is not worth as much...... I know that no one can predict what will happen but would I be in a better position to take on the equity loan or to pay the interest on the loan and when everything settles make a decision. As then I could maybe take on a second mortgage just for the equity loan?

Look forward to your reply,

Ann

It's good to think through the options now.

Waiting until the Brexit situation is clearer is certainly an option.

It may be worth considering a new mortgage with no redemption penalties, that way you could remortgage again to repay the HTB loan when you decide to do so.

JuJuMonkey

Hi, we will finally be in a position to buy our first home this year and am wondering if this loan is a good idea to save interest on paying a bigger mortgage?

What I mean is, we are thinking about getting one of these loans as it's interest free for the first 5 years, and paying it off within that time (therefore borrowing the money without any fees), as opposed to having a bigger mortgage and paying interest on the bigger mortgage.

Is this a good idea? or will it be just as easy/cheap to get a full, regular mortgage after taking into account redemption fees,etc? I've not seen anyone mention this anywhere so am I misunderstanding?
To me it seems we can save a heap of money by taking on this loan xx

silvercar

JuJuMonkey wrote: »

Hi, we will finally be in a position to buy our first home this year and am wondering if this loan is a good idea to save interest on paying a bigger mortgage?

What I mean is, we are thinking about getting one of these loans as it's interest free for the first 5 years, and paying it off within that time (therefore borrowing the money without any fees), as opposed to having a bigger mortgage and paying interest on the bigger mortgage.

Is this a good idea? or will it be just as easy/cheap to get a full, regular mortgage after taking into account redemption fees,etc? I've not seen anyone mention this anywhere so am I misunderstanding?
To me it seems we can save a heap of money by taking on this loan xx

Depends if you want to restrict yourself to choosing a (potentially overpriced) new build.

Mathias123

We’re considering remortgaging/switching partway through the 5 year interest free period. There is little information in the guide about this, e.g. I can’t see any reference to switching deals with the same lender during the 5 year period.

We have a 2 year fixed mortgage that ends in June. After this we still have 3 years left on the 5 year period so are looking to fix to for another 3 years. A brief section about switching products with the same lender would be useful, as well as if HCA approval is required or not - I can’t find any information on this anywhere!

Ashleighmckenna

Hello, I am hoping to gain the best option, from people's experience and knowledge on H2B redemption...

I bought my first home in May 2018 and took out the H2B equity loan. I appreciate I have 5 years until interest etc, but I am now in the position to pay the equity loan off in full.

I have read through the Target document and I know my options. There is obviously a few fees, including Chartered Surveyor, Solicitor and H2B £200 fee to pay, when going through the process. My mortgage is 2 year fixed, so I would need to remortgage in May 2020.

However, whilst I have the money, I really would like to pay it off.

Is it best to go through the redemption process... or because I am in a much better financial situation now, would it make sense to remortgage? Pay the H2B and find a better mortgage rate?

I don't even know if that's an option to be honest, I haven't looked that far into it.

Is there charges for remortgaging early?

Thank you

Jtipple

We’ve recently secured a 75% mortgage from Natwest. We have our 5% deposit and applied for the Help to buy equity loan from the government who have refused us based on affordability. We are both first time buyers. I’m a part time primary school teacher (have a 14month old so want to be home with her) and my husband works for a charity. Our credit rating is excellent. We want to get on the property ladder and have reserved a property (no charge). Please advise what we can do now.