Remortgaging with new applicant via help to buy

NatashaW88

Hi,

I am currently considering a mortgage via help to buy scheme via a 2 year fixed deal. This mortgage arrangement will be in my sole name however when I remortgage in 2 years time I would like the flexibility of adding my partner to the mortgage (we are not married) who is currently not in a position to obtain a mortgage himself.

Is this possible to remortgage after 2 years via the help to buy scheme with an additional home owner who wasn’t previously on the deeds?

Many thanks

amnblog

You would have to alter the Equity Loan as well as the Mortgage.

I have not been asked this before but I suspect you will need to request a new equity loan based on the current value. I would be interested to hear a definitive on this one.

NatashaW88

Thank you for coming back to me! I am really struggling to find an answer to this one! If I do I’ll be sure to let you know.

amnblog

Speak to the provider of your Equity Loan.

kingstreet

https://www.myfirsthome.org.uk/iwantto/transfer-of-equity/

We are unable to add another party onto an existing agreement under our administration or provide advice on alternative options.

sal_III

You are not allowed to add owners when using HTB equity loan (assuming that's what you meant as there are other HTB products).

I'm in a similar boat the mortgage and the property are solely in my name. Our plan is to build up as much equity as we can in the 5 years interest free period of the equity loan and then remortgage in both of our names repaying the equity loan with the new mortgage.

NatashaW88

Thank you for your reply, this is my plan too. Do you mind me asking, do you have any deed of trust or anything similar in place to protect the other party? My partner will be contributing towards mortgage repayments and obviously wants some sort of protection!

Thanks

sal_III

The trust is called marriage in case we split, she will be entitled to 1/2 of it anyway

Anyway I'm the sole earner in the family for the time being, so she is not making any financial contributions towards the mortgage.

AFAIK even without his name on the mortgage or marriage your partner will have a claim on portion of the property based on his financial contribution towards the mortgage, so his interests are somewhat protected.