Help to Buy equity loan

Michelle1992

Hi,

Just a quick question as I have been given 2 different answer from different people on the phone at Nationwide.

So we are approaching the end of our fixed deal with Nationwide and also the end of our first 5 years with the help to buy equity loan. We are looking to do additional borrowing to clear the equity loan in full and also to build a extension. One advisor told me I had to apply for the extra to clear the equity loan then once that’s complete apply again for the amount for the extension which seems a long winded way to do it and another said we can do it all in one application which is what we would prefer to do.

Could anyone tell me which is correct please?!

Thanks

kingstreet

Nationwide internal procedure - sorry, no idea.

As additional borrowing may be at a higher rate, keep an eye on potential remortgage options as well.

Michelle1992

We thought about remortgaging but due to a change in how my husbands bonus’s are paid other lenders would only give us enough for the equity loan not the extension

foxy-stoat

Do you have enough equity to clear the loan and pay for the appropriate increase in value and extend?

Michelle1992

Yes we do have enough to do both

JB1015

We just cleared the HTB loan and got some extra money for home improvements. I think some lenders aren’t keen on doing both (from our experience). We ended up with Accord (broker only part of Yorkshire) and got what we were after.

foxy-stoat

https://forums.moneysavingexpert.com/discussion/5921726/is-this-mortgage-amount-possible

If its the house you bought for £350,000 with a £70,000 HTB loan and £30,000 equity - how much has it gone up in value in 12 months and how much is the extension going to cost?

You still need at least 10% cash equity in the property with all the borrowing and the salary multipliers.

Michelle1992

We never went ahead with purchasing a new property last year so are still in our existing one so those figures quoted are incorrect

I know I need at least 10% left, we would have more than that still after borrowing the extra