Remortgaging with Help to Buy

Stephferguson

Hi,

My partner and I are buying our first home using the Help to Buy scheme. It!!!8217;s very obvious there are certain ways you have to pay the help to buy loan back. However, what if we remortgage at the end of the first 5 years essentially gaining the money we have borrowed from the government through the bank to pay it off?

For example:
We buy a house for 200k
The government leand us 50k
We pay a 10k deposit
Leaving us with a 140k mortgage

In 5 years when we have to pay our help to buy loan back could we:
Remortgage for 190k
Giving us that 50k in our pockets to pay the government back

(Excuse the inaccurate figures, this is just for an easy example to explain what I mean)

Does anyone know if this is possible? We have been told by a financial adviser that it!!!8217;s possible but we have to save a minimum of half of what we borrow from the government ourselves and then we can remortgage for the remaining amount. Surely if we can remortgaged for half the amount we can remortgage for the full amount?

Forgive me if I!!!8217;m completely wrong and naive about this. There is just no information on this anywhere... probably for a good reason.

Can anyone shed any light on this?

Thank you in advance!!!!

kingstreet

You need enough equity in the property after the remortgage.

If the lender will lend upto 80% and you need £190,000 your property value would have to be £237,500.