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Paying off Help To Buy loan
OneSideOfNormal
Posts: 1 Newbie
We're coming to the end of our first 5 yr fixed rate mortgage and we took out the Help To Buy (HTB) loan at the time.
Obviously the interest payments on the HTB start soon, and we want to remortgage and pay off the loan in full. But it seems ridiculously complicated.
Has anyone else done this and how did you find it? Do you have any advice or steps we should follow to make this happen?
Obviously the interest payments on the HTB start soon, and we want to remortgage and pay off the loan in full. But it seems ridiculously complicated.
Has anyone else done this and how did you find it? Do you have any advice or steps we should follow to make this happen?
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Comments
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just diong this myself, you need a valuation of the property done by an independent, solicitor involved and then speak with the bank and look at the mortgage options! It's expensive too as you pay an admin fee as well! Right pain in the rear!
I'm about to talk to my current mortgage lender today about options - as I have the remortgage rates now I'm 3.5 months away from my mortgage deal ending (5yr mark)0 -
Existing lender = additional borrowing/further advance not a remortgage! Remortgage = new mortgage from new lender to repay current mortgage and HTB loan. Ensure you are pondering the correct rates.funkyfin2000 said:just diong this myself, you need a valuation of the property done by an independent, solicitor involved and then speak with the bank and look at the mortgage options! It's expensive too as you pay an admin fee as well! Right pain in the rear!
I'm about to talk to my current mortgage lender today about options - as I have the remortgage rates now I'm 3.5 months away from my mortgage deal ending (5yr mark)I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
I do a lot of help to buy.
You will need to get a revaluation from the independent surveyor which will determine how much you need to pay back.
You then need to remortgage for your existing loan amount plus the bit to buy out help to buy.
Not every lender will allow additional borrowing to buy out help to buy so speak to a broker if you aren't sure0 -
This urge to repay the equity loan before the full fees start is common but not the issue borrowers think it is.
The cost of maintaining the loan is modest and probably less than borrowing more on mortgage to pay it off.
If the property value is on the rise it is probably be a good idea. If the property value is dropping you are shooting yourself in the foot.
I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.1
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