Help to buy interest free?

charlieleam

Coming to the end of 2 year fixed term on new build. Still got 3 years before paying back HTB loan. About to have a 2nd child. Is it an option to switch my mortgage to an interest free mortgage for 2 years whilst wife on maternity etc with the equity loan?

[Deleted User]

If you hear of any interest free mortgages, let me know.

I'll have one!

comeandgo

Interest free, do you mean interest only? How much equity do you have in the property? We did have interest only for a few years but we had 60% equity at the time and I think it's still a high percentage needed.

[Deleted User]

You can't take interest only until HTB is paid off (government schemes must be on repayment).

I'd imagine if you're on HTB now, you're going to have nowhere near enough equity for interest only unfortunately. Lenders are very conservative - low LTVs, high value cash equity.

I can't think of any appropriate suggestions to lower payment other than extending the term - is that an option for you both?

You can always cut it back again later AND you'd retain the ability to overpay each month/year if you happen to be in the position of having cash left over.

Re-mortgaging with a HTB in place is more difficult. So you may have to see what your existing lender can do for you. Having a chat about payment options won't be a negative, it's only if you entered a physical repayment arrangement that it'd be marked on your account & credit file, so I'd certainly give them a call too

foxy-stoat

charlieleam wrote: »

Coming to the end of 2 year fixed term on new build. Still got 3 years before paying back HTB loan. About to have a 2nd child. Is it an option to switch my mortgage to an interest free mortgage for 2 years whilst wife on maternity etc with the equity loan?

No, just re-fix it for another 2 years at the best rate you can.