Trying to pay off Help To Buy Scheme with savings

mafalda_correia

Hello 
My friend bought her house 5 years ago with the Help To Buy Scheme. It is now the 5th year so she will be paying the equity loan. She has been saving money the past 5 years and has saved enough to pay off the equity loan in a lump-sum (she is aware that you pay for the value of the house now, so she has saved more money with that in mind).

She had called her solicitors to get the Help To Buy repayment started and she told them that she will be paying it in full. She just got their pack with a fee titled "Remortgage Quote Freehold". I understand a lot of people remortgage their house to pay off the equity loan but this is not what she is looking into. Is there a different pack for people that want to pay the loan in a lump-sum or is the solicitor's bill title correct? Unfortunately she works from 5am-6pm so the solicitors are closed and her only day off is next week, so she is interested in seeing if anyone has had the same experience?

Has anyone paid their Help to Buy Scheme in a lump-sum? Please can you let us know what it was like?

Thank you so much!

MovingForwards

She can email them if she can't call the solicitors.

Can't offer any response to the redemption query.

Thrugelmir

Few people will redeem the HTB loan in cash. Most will have been overpaying their mortgage. Solicitor will follow similar process though with the exception that they'll be no remortgage to deal with. 

20SmthngSver

You can pay staircase without remortgaging. You will still have to be conned in the sense of having to pay a repayment fee to HTB, a fee to the valuer and also to the solicitor. It could be as much as £1,500 to make the payment in fees alone. 

People on a 5yr fix mortgage will have to remortgage at the same time as the loan is also 5 years interest free. If you wish to staircase and clear it, and then remortgage after as you'll have more mortgage deals available without the loan attached to it, then make sure your valuation is still valid, else you could end up paying two lots of fees. So maybe it may be better to remortgage at the same time.