Getting out of help to buy

Locornwall

Sought of.

Outstanding mortgage is approximately £265K plus 20% (which was originally £89k), so original total was £355k outstanding. I can pay 10% of the £265k each year and then remortgage in 3 1/2 years now, as I can do that within 4 months of mortgage deal finishing. I will make overpayments, but knocking 20% won’t be easy. My original question was to do with trying to get rid of the HTB early on, which I was almost sure I couldn’t, but just wanted to get an opinion on. As I said, hopefully house prices don’t increase (much).

kingstreet

A further advance from your existing lender could be used to repay all/half the equity loan. A third party secured loan could be used to repay all the equity loan. The only purpose for which you can borrow more is for staircasing or repayment;-
https://www.myfirsthome.org.uk/iwantto/redeem/

SandyShores

We're in a similar position to you with help to buy.  It can seem a bit worrying to have this outstanding loan which could go up - but don't forget that it could also go down as well   Our 20% is £65,000 and I've worked out that if it was added to our repayment mortgage for 5 years the interest would have been around £3,000.  So that's a saving to start with and, as having the help to buy loan qualified us for a lower interest rate, there are additional savings there too.  Like an earlier poster said, we could never have bought this house without HTB and, if we'd bought an older house, as well as more interest we'd be spending lots of money on decorating and repairs etc.  Our current payments mean we are paying off about £1k of the capital each month - so approximately £60k in 5 years - and from June we are planning to overpay by substantially more.  We're going to overpay as much as possible and aim to have about 40% equity in the house to give us the best chance of getting a good rate when we remortgage to cover the HTB.   Our last option would be to sell up and use the equity to buy a smaller house - we hope it won't come to that, and we have a back up to use some of DH's pension if that's right when the time comes.  In the meantime I'm going to enjoy living in a lovely new home and keep my fingers crossed.

ps when you pay back HTB you have to pay for a revaluation plus, I believe, legal fees, so we're planning to pay it all back in one go by remortgaging to save paying more fees.