Using equity to pay back help to buy loan

Daisy_84

MWT said:

If the value of the property is lower then yes, the equity loan amount drops as well, but that doesn't help you when it comes to getting the new mortgage, as that also impacts on the amount of equity you have created through your mortgage payments reducing the existing loan.

So if you have the cash, the reduced value would be a benefit in relation to the equity loan, but if you need to raise the mortgage to pay it off then it isn't so helpful as it impacts on the LTV.

Has your value really fallen though? ... need to take a look at recent sales to get a better idea...

I don't think it has fallen. If it has gone up then it would be only marginally. I bought for 205,000 and terraced houses like mine have sold for 210,000 in the last two years. 

The average property price in the area is 235,000. The average value includes semi and detached houses. 

andyf1980

Daisy_84 said:

andyf1980 said:

So we had to find a surveyor to value the house and then we worked with a mortgage broker to deal with that. You need a solicitor to deal with the remortgage and also to deal with the HTB. 

Ours had not increased in value so there was no money to pay back in that way. 

Great. Thank you. 

Were the solicitor's fees expensive? 

How can you have accrued equity if the property value hadn't increased? I thought the money to pay the equity loan would be from the value increase. Am I missing something?

Sorry, should have been more clear. We remortgaged and payed off the HTB with a higher mortgage. Of course we had some equity as we had been overpaying the mortgage during the HTB. We paid £800 for the solicitors.