first time buyer - help to buy with equity loan, remortgage options?

il638

hi all,

i was hoping you could help me as im starting to feel a little worried. i bought a house on the help to buy scheme with an equity loan, and fixed the mortgage with natwest for 5 years.

I had intended to also save minimum 150 a month aside towards equity loan aswell so that come remortgage time i could at least pay off half the equity loan aswell. as things have panned out with life, work breaks and parents health, this hasnt been possible and i only have around 3k aside spare with just under a year to go before remortgage time.

My worry is i wont be able to remortgage as many people dont offer mortgages to those with an outstanding equity loan as far as i understand, they did mention not many providers offer mortgage if u have a loan. i intended to save half and remortgage remaining half off equity loan into the mortgage.

is their really less providers out there for me to get a good deal with outstanding equity loan? is it still possible for me to remortgage and add the value of the equity loan into the mortgage total without using any savings(as i doubt ill be able to save anymore at this moment in time)? or am i now stuck with interest going to be added to equity loan and on standard variable rate on mortgage?

surely there are some providers who would still help, they are lots of people out their with equity loans and on the help to buy scheme.

i am on a good wage (35k a year) just had to use a bit of savings to help sort a family situation out.

Kind Regards

Il638

csgohan4

how much equity is in your house, how much did you borrow and % of the loan of the house?

I suggest a whole of the market broker to explore your options for you

il638

i took 30k on equity loan and equity in house at the end of 5 years will work out the same, so the total loan to value with equity loan added on to mortgage would be the same as i have been currently paying if i get the same rate and able to do it. i dont know if value has gone up or gone down in area.

so there is options even without cash towards equity aswell? i was made to think unless i had cash towards it, not many people would remortgage it or take me on with it other than current provider Natwest. i like the house and area so dont want to sell and or move to pay their share back.

[Deleted User]

you will need to know the value of your property if you want to explore releasing the value to repay the equity loan. I have done plenty remortgages to completely clear the equity loan using just the value of the home. The numbers matter though so unless we know how much you bought it for and how much its worth now there is no information we can give

andyf1980

We have done just this. Now at 85% LTV and repaying the equity loan when the mortgage completes next month.

il638

andyf1980 wrote: »

We have done just this. Now at 85% LTV and repaying the equity loan when the mortgage completes next month.

ah ok, so you have just remortgaged equity loan into the mortgage? which provider is this with? did you use any of your savings aswell?

il638

Deleted_User wrote: »

you will need to know the value of your property if you want to explore releasing the value to repay the equity loan. I have done plenty remortgages to completely clear the equity loan using just the value of the home. The numbers matter though so unless we know how much you bought it for and how much its worth now there is no information we can give

house was bought for 160 and online search shows it being worth 156 now atm but one year to go before i need to remortgage. im glad to hear uve done plenty, my worry was they wasnt many choices or providers, if thats not the case then i think i should be ok.

[Deleted User]

One of the main issues with HTB, everyone intends to set savings aside but "life" happens!

Re-mortgaging to repay the loan in full is possible, depending on the prices and how much of the original mortgage you've paid off. If you have savings to put towards it, even better

Re-mortgage to only repay part, or to leave it all in place, is possible but harder (although the market is opening up to this a bit more)

If you really don't have any options, a product switch with your existing lender is always another option until you can re-assess. But of course the monthly payments on the HTB loan are only paying the interest.

I'd certainly speak to a broker, try and get hold of your existing mortgage balance / redemption statement too

Futuristic

il638 wrote: »

ah ok, so you have just remortgaged equity loan into the mortgage? which provider is this with? did you use any of your savings aswell?

Theres quite few options afaik, I'm remortgaging with the loan with Barclays. Think there's not many options whilst retaining part/whole equity amount. HSBC/Santander I think allow remortgage with HTB if you pay off/borrow the whole HTB equity amount to pay it off. Santander/Barclays afaik have the lowest rates going right now for 2 & 5y.

amnblog

Not sure what you are worrying about here.

Yes, few Lenders like to remortgage with H2B loan in place but there are enough to give you sensible options on top of those available with NatWest.

Why would you buy out anyway if the value is dropping and the H2B Team are picking up 20% of that loss.