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Remortgaging on Help to Buy - Not Nettling Loan?
MaxBoy
Posts: 1 Newbie
Hello all,
My partner and I moved into our new home last year. We have been fortunate enough to have received some pay raises and the house has increased in value. We are now in a position where we are looking to remortgage and release some money to hopefully buy a second house on a buy to let.
I have emailed Target, who I am told now looks after help to buy. They have told me that if i was to remortgage with my bank i would have to put this money towards my help to buy loan. I am not sure how they could enforce this or even be aware? Can anyone shed any light on this? As we cannot afford to clear the help to buy and take some money out.
Many thanks,
Max
My partner and I moved into our new home last year. We have been fortunate enough to have received some pay raises and the house has increased in value. We are now in a position where we are looking to remortgage and release some money to hopefully buy a second house on a buy to let.
I have emailed Target, who I am told now looks after help to buy. They have told me that if i was to remortgage with my bank i would have to put this money towards my help to buy loan. I am not sure how they could enforce this or even be aware? Can anyone shed any light on this? As we cannot afford to clear the help to buy and take some money out.
Many thanks,
Max
0
Comments
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Hello all,
My partner and I moved into our new home last year. We have been fortunate enough to have received some pay raises and the house has increased in value. We are now in a position where we are looking to remortgage and release some money to hopefully buy a second house on a buy to let.
I have emailed Target, who I am told now looks after help to buy. They have told me that if i was to remortgage with my bank i would have to put this money towards my help to buy loan. I am not sure how they could enforce this or even be aware? Can anyone shed any light on this? As we cannot afford to clear the help to buy and take some money out.
Many thanks,
Max
A mortgage lender is not going to allow you to remortgage to release some equity when there's an outstanding HTB EL. They will need permission from Home England's Mortgage Administrator who won't grant it.
Furthermore you cannot purchase another property whilst you have an outstanding HTB EL. If you try you'll come unstuck when your solicitor cannot verify that you've sold your current home.
This information is all available in the Help to Buy Buyers Guide which you can find on the Help to Buy website.0 -
https://www.myfirsthome.org.uk/If you want to change your main mortgage lender (remortgage) you will require HCA and, if applicable, the Developer Lender consent. There are certain requirements that must be met for your request to be considered:
The mortgage term with the new lender must not exceed the unexpired term of your existing mortgage. For example, if remortgaging a 25 year mortgage 5 years into the term, the new mortgage should not exceed 20 years.
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.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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