Paying off HTB

J_Watson

Hi all

My 5 years is coming up in December and I want to pay the HTB loan off in full either with a further advance from my current provider (nationwide) or remortgage with additional borrowing elsewhere. As well as this I want to borrow a little bit more for converting my garage.

I spoke to nationwide about the process and they said I’d have to apply for a further advance on the HTB loan first and then apply for another one for anything else. Seems a bit of a faff and I’d have 3 payments coming out every month.

What kind of documents are required for further advances? Is it similar to a full mortgage application (pay slips, statements etc)

If I remortgaged elsewhere would this still be the case? Or could I apply for the extra borrowing on top of paying HTB off so just have one single payment come out each month?

Would be interested to hear anyone else’s experience doing something similar. Affordability shouldn’t be an issue judging by the remortgage calculators on each lenders sites.

Thanks

LRmortgage

Either way, full application with payslips etc will be required for a further advance or remortgage.

With a remortgage you should just be able to apply for the full amount that you are looking for. Lenders are likely to ask for the breakdown of this amount but will still be treated as a single loan and one payment on one product coming out of your account.

A_Random_Man

Generally speaking a further advance will require a new application to be submitted and evidence of income provided as per the regulators rules, you may also need to get a solicitor involved as the HTB company have a registered second charge on the property and you will also need to speak to the HTB provider as they also may require a up to date valuation on the property which you may need to pay.

As for remortgaging to another provider they may allow this to be done as 1 transaction it depends on the bank themselves they will certainly need to do a new application just like nationwide which will require new payslips etc. You would need to speak a prospective bank and ask them how they would do it as not all providers have the exact same policy

dimbo61

As you have a new build Well 5 years old do you need permission off the developer to change the garage into a room.
Have you overpaid the mortgage every month or built up equity in the property over the last 5 years.
Has the property gone up in value.
In order to pay off the 20% or 40% in London you will have the property values !
It's 20/40% of the current value or the original value (20/40%) as the government wants extra if it's gone up in value but Not down in value !
Does the maths add up ?
75% mortgage plus 20% HTB plus money for garage conversion ?