Help to buy remortgage - help to buy loan

Jemmal

Hi this is my first post here and just looking for some advice . We bought our home 4 years ago in November with the help to buy scheme. Our current mortgage deal is up in november and we would therefore me thinking of remortgaging, our help to buy loan will start having interest added as of next year . My question is would it be likely that we would be able to remortgage and say take 10k back from the house value for home inprovements/other debts we have and decide not to pay the help to buy loan off yet and wait a few more years or would this just not get accepted and must we use any money to pay the help to buy loan off ?

Sorry if any of this doesn't make sense, all very new to this and confusing but just after abit of advice if anyone has been in this position. Thank you very much . X

kingstreet

No. That is not possible.

https://www.myfirsthome.org.uk/iwantto/remortgage/

Jemmal

Thanks for your reply . Why is this? Is it because you are expected to pay the help to buy loan off before lending money for anything else ?

Thanks

foxy-stoat

Jemmal wrote: »

Thanks for your reply . Why is this? Is it because you are expected to pay the help to buy loan off before lending money for anything else ?

Thanks

The new mortgage must be no more than the existing loan with the main lender mortgage. The exception to this is if you are going to use the additional borrowing to repay your equity loan.


That was on the link kingstreet gave you.

What did you spend £10,000 on improving a new house though in the first few years?

Jemmal

We havnt , it would be our plan to pay off some existing debt we already have on a exisiting credit card and to then carry out some home improvements. We havnt yet done this sorry if my original message was unclear. Wouldn't even necessarily need 10k if it wasnt possible our main concern is being debt free so 5k would clear our debts and then put us in a better position for the future for when we do remortgage again in the future and then pay off the help to buy loan . Hope that makes sense.

foxy-stoat

Your better off making overpayments to clear the credit card down using your monthly salaries.

Unfortunately you wont be "debt free" if you could do this as you would just be moving the debt onto your mortgage, you would end up paying more interest over a longer period.

If the credit card debt isn't on a zero percent interest deal then get it on one and try and clear it down as much as possible.

Jemmal

Like I said previously I'm new to all of this and i was after some advice . No need to be rude . But thanks for your input. Now move on and go let your anger out on somebody else . Goodbye :money:

To everyone else who gave helpful advice thank you I understand it all abit better now and no which route I should be going down so thanks for that.

Exodi

I would however like to nominate the OP's idea of moving short term unsecured card debt to a 20 year loan secured against their house, of which they already have a 20% equity restriction on, as the worst idea of 2020 to date.

Jemmal wrote: »

We havnt , it would be our plan to pay off some existing debt we already have on a exisiting credit card

Your choice of words also terrify me:

'pay off' - you're not paying the debt off, you're moving it. The can is being kicked down the road. This mentality is so common with consolidation loans and leads people to end up overspending again because they feel the debt has gone.
'some existing debt' - the choice to use 'some', instead of 'all','our', 'the' , etc worries me. If you have significant debt, it may be an idea to see where savings can be made by visiting our DFW forum.

kingstreet

foxy-stoat wrote: »

Your better off making overpayments to clear the credit card down using your monthly salaries.

Unfortunately you wont be "debt free" if you could do this as you would just be moving the debt onto your mortgage, you would end up paying more interest over a longer period.

If the credit card debt isn't on a zero percent interest deal then get it on one and try and clear it down as much as possible.

What exactly is rude about this...?

Jemmal

Nothing is rude about that, sorry I was replying to exodis original comment. Today is my first time commenting on here so sorry if I'm replying to the wrong comments I'm not sure how to replying to individual replies.

fimacdoodle

Go with foxys suggestion. Don’t add debt to other debt..........