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Help to buy loan repayment advice?
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CrovaxUK
Posts: 1 Newbie
Hello there, first time poster here and financial dunce looking for some advice if I may!
I bought a help to buy home about 5 years ago with a 20% htbl for £325k and the house is now worth around £375k - £385k. We're coming to the end of the interest free period of the 20% loan and we're weighing up our options.
After looking at the housing market and what we could afford we've decided we're pretty happy with our house and don't wish to move. So we are now thinking about paying off the loan. We don't have the savings to pay this off so are looking at remortgaging. I spoke to a family friend mortgage broker and after looking at the market and considering our £10k early repayment fee on our current mortgage he said its probably best to do this through the bank we're currently with, avoiding said fee as it works out as much of a muchness with the savings of a better mortgage deal.
After speaking to the bank they mentioned that we would effectively have two loans, a mortgage and another loan running alongside (at 1.9% interest) to pay off the government htbl amount which could be anything from £70k-£80k depending on how much the house is valued at.
I just wanted to check if anyone had any advice here, if this is the right way to go?
Thanks
I bought a help to buy home about 5 years ago with a 20% htbl for £325k and the house is now worth around £375k - £385k. We're coming to the end of the interest free period of the 20% loan and we're weighing up our options.
After looking at the housing market and what we could afford we've decided we're pretty happy with our house and don't wish to move. So we are now thinking about paying off the loan. We don't have the savings to pay this off so are looking at remortgaging. I spoke to a family friend mortgage broker and after looking at the market and considering our £10k early repayment fee on our current mortgage he said its probably best to do this through the bank we're currently with, avoiding said fee as it works out as much of a muchness with the savings of a better mortgage deal.
After speaking to the bank they mentioned that we would effectively have two loans, a mortgage and another loan running alongside (at 1.9% interest) to pay off the government htbl amount which could be anything from £70k-£80k depending on how much the house is valued at.
I just wanted to check if anyone had any advice here, if this is the right way to go?
Thanks
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