We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
Help to Buy Equity Loan - Second Property
dannyrst
Posts: 1,519 Forumite
I'm coming to the end of my 5 year fixed rate mortgage and also the interest free period of the HtB equity loan, and as such I'm doing some calculations to figure out what would be the most profitable way forward. One of the options I am considering is to re-mortgage, keep the loan on our house but remove some of the equity to then purchase a second property to rent out.
Now, the terms of the equity loan were that when we applied (2017) we had to be first time buyers with no interest in any other property. This was true and still is.
What I'm trying to establish is whether I can now purchase another property without paying back the loan. I don't recall seeing anything in the terms about this, and nothing is mentioned to say this isn't allowed. Can anyone confirm?
Now, the terms of the equity loan were that when we applied (2017) we had to be first time buyers with no interest in any other property. This was true and still is.
What I'm trying to establish is whether I can now purchase another property without paying back the loan. I don't recall seeing anything in the terms about this, and nothing is mentioned to say this isn't allowed. Can anyone confirm?
0
Comments
-
@dannyrst With regard to capital-raising for the purpose of a BTL deposit while retaining the H2B equity loan, with most lenders the shared-equity mortgage product that you remortgage to will only allow capital raising for a limited set of reasons - repayment of part of equity loan, home improvements, transfer of equity, etc.
I am a Mortgage Adviser - 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 -
Ah, that could be a problem then...but not a show stopper? Would just take some digging around?K_S said:@dannyrst With regard to capital-raising for the purpose of a BTL deposit while retaining the H2B equity loan, with most lenders the shared-equity mortgage product that you remortgage to will only allow capital raising for a limited set of reasons - repayment of part of equity loan, home improvements, transfer of equity, etc.
0 -
@dannyrst Couldn't say, never done an htb remo case where the capital-raise was for anything but home-improvements or paying off the equity loan.dannyrst said:
Ah, that could be a problem then...but not a show stopper? Would just take some digging around?K_S said:@dannyrst With regard to capital-raising for the purpose of a BTL deposit while retaining the H2B equity loan, with most lenders the shared-equity mortgage product that you remortgage to will only allow capital raising for a limited set of reasons - repayment of part of equity loan, home improvements, transfer of equity, etc.I am a Mortgage Adviser - 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 -
Based on:
https://www.gov.uk/guidance/how-to-remortgage-your-help-to-buy-home-and-borrow-more-money#when-you-can-remortgage-and-borrow-more-money
"We’ll only allow you to remortgage and borrow more money:- to pay back part or all of your equity loan
- to make structural alterations when we’ve given you permission
- to fund a transfer of equity"
I guess it isn't possible, oh well!1
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 349.7K Banking & Borrowing
- 252.6K Reduce Debt & Boost Income
- 452.9K Spending & Discounts
- 242.7K Work, Benefits & Business
- 619.4K Mortgages, Homes & Bills
- 176.3K Life & Family
- 255.6K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 15.1K Coronavirus Support Boards