Remortgaging on discount for first time buyers scheme

Amy1987

Hi there, looking for some advice please with regards to remortgaging on the discount for first time buyers scheme.

My partner and I purchased our first home via this scheme through Cheshire East. It is not a shared ownership scheme, instead we paid 70% of the market value, however, when if and when we come to sell we will have to sell it via the scheme.

Upon the time of purchasing, Halifax was the only mortgage provider willing to lend on the scheme. The irony was (given its to help first time buyers) the payments were higher than some other lenders who would have been prepared to lend at a lower rate if purchased in the traditional way.

Our mortgages fixed term will be coming to an end in September, and I wondered if anyone else has had experience in this and had found any other lenders to Halifax?

Many thanks in advance!

Amy

ACG

It sounds like a section 106?

Assuming it is, it is not limited to Halifax - who told you that? We did one for a customer with major adverse 2-3 years ago. There are plenty of lenders who will do them.

The issue tends to be what the restrictions are. If it is just selling for a percentage of the true value, you should be fine. If you are restricted to selling to people who live/work in the local area it may be a little trickier but in any event you should have options away from Halifax as they are relatively common - we do maybe a handful of them a year.

I used to live in Cheshire East, we moved to the outskirts of Stockport 2 years ago and the council tax jumped up...so did my car insurance. Nightmare!

Amy1987

Hi

Thanks for your reply!

When our mortgage advisor was searching they advised that they could only find Halifax lend to the scheme.

Yes there are conditions to scheme - those first time buyers applying need to do so via Cheshire East and either be resident or work in the county.

You'd expect there be a handful of options at least, feel tied to a monopoly with Halifax!

Cheers

Amy