Conveyancing fees for Help to Buy Redemption through remortgaging

evchenko

Hi all, this is something that has been stressing me out and I'm hoping someone who has been through the same process may be able to assist.

We are at the end of a 5-year fixed term mortgage, which tied in with the Help to Buy scheme. The current mortgage deal is coming to an end at the end of June, and we will start paying interest payments on the Help to Buy loan just before this deal is due to expire.

We are staying put in our house but are looking to remortgage to encorporate further borrowing to pay off the equity loan; we have an agreement in principle and are having a mortgage appointment early next week. We need the valuation letter from Target for redemption ASAP so I need to get the ball rolling there now.

We have had a RICS surveyor in to value the house, and we now need to instruct a solicitor as specified by Target HCA. I have asked for quotes and there seem to be quite a few quotes for dealing with both the remortgage AND the redemption part of the process, which is coming out at £900-1000 (and seems pretty high to my virgin eyes).
Has anyone had this kind of experience? This is my first house so I haven't had to deal with remortgaging before; I just don't want to pay any unnecessary fees here.

Any help would be much appreciated!

Thrugelmir

The quotes may appear expensive but at least you can take comfort from the benefit of the 5 years of interest free loan. Unfortunately you'll pay the costs of the other parties involved to perform the necessary legal paperwork. Hourly rates are expensive as it's not just the person but all the overhead costs of the business that need to paid for. There's no avoiding the 20% VAT levied either. 

RelievedSheff

We have just remortgaged and the new lender paid our legal fees. But there was no Help to Buy involved.

You have had a 5 years interest free loan, the extra paperwork involved in redeeming this is where the extra charges are coming from. Just think of all the interest you have saved over 5 years. That will make the £1k legal fees seem like nothing!

getmore4less

There is also the big saving from having the other 75% on a lower rate than it would have been without H2B..

Have you checked if it would be cheaper staying with the same lender even if they don't have the best rates cheaper costs may just swing it.

[Deleted User]

A normal remortgage costs about £300-£500.  Add in a bit of extra work for h2b and its maybe £600.  Problem is that you have to then pay targets legal fees as well so the cost increases.

The lender may offer some cashback of up to £500 that might offset some of these costs