Remortgaging with Help to Buy Loan

ccdorset

Hello,

My 5 year fixed rate of 2.69% with Halifax comes to an end on 31st Jan 2023. I purchased the property through the Help to Buy scheme, so the 5 year interest free period will soon be up.

My plan was to just do a product transfer with Halifax and keep the HTB loan separate for now, however, I won’t be able to negotiate a new deal until 3 months before the deal ends. So I’m looking at early November.

I’m really concerned about the prospect of what interest rates could be like come then, so I’m thinking if I opt to remortgage elsewhere, I can then book in a rate early next month as the AIP is valid for 6 months, which will hopefully be lower than what I could find in November. If I go down this route I’d want to pay off the HTB loan with the new mortgage, as I don’t want to pay fees to postpone the second charge and then have to pay fees again to redeem later down the line.

I will need to get a RICS valuation for the HTB agency Target, but I understand that is only valid for 3 months. What I’m confused about is I will need to get this valuation next month, so that I can find out how much the property will be valued for HTB purposes, and subsequently confirm how much I will need to borrow to pay it off, as it will be dependent on any price increase/decrease.

If the RICS valuation is only valid for 3 months and I’m 6 months away from the remortgage actually going through, I am guessing I would need to pay for another RICS valuation nearer the time?

Then from what I understand any legal fees paid for by the new lender would only be standard and I’ll therefore have solicitors fees on top for the HTB element.

Another dilemma is if I go through all this now and pay out all these fees, then Halifax come up with a decent product transfer offer in November, I would have wasted money on fees and valuations. On the other hand, if I wait then I could find myself with a much higher rate come November.

Finding all of this very complicated! Any advice greatly appreciated!

Thanks :-)

kingstreet

https://www.gov.uk/guidance/how-to-remortgage-your-help-to-buy-home-and-borrow-more-money

"How long your valuation is valid for

Your valuation report is valid for 3 months from the date it was produced.

If your remortgage has not been completed within this time, you’ll need to get a letter from the surveyor saying it can be extended for another month.

If the remortgage has still not been completed after the extra month, our administrator will tell you that you need to get a ‘desktop valuation’ (where the property is valued without the surveyor visiting it in person)."

There may be cost involved but it shouldn't be as high as the original valuation cost.

ccdorset

kingstreet said:

https://www.gov.uk/guidance/how-to-remortgage-your-help-to-buy-home-and-borrow-more-money

"How long your valuation is valid for

Your valuation report is valid for 3 months from the date it was produced.

If your remortgage has not been completed within this time, you’ll need to get a letter from the surveyor saying it can be extended for another month.

If the remortgage has still not been completed after the extra month, our administrator will tell you that you need to get a ‘desktop valuation’ (where the property is valued without the surveyor visiting it in person)."

There may be cost involved but it shouldn't be as high as the original valuation cost.

Thank you, I'm wondering if it would be easier for me to just do an additional borrowing application with Halifax now to pay off the HTB loan. I'm thinking the solicitors fees should be lower than if I was remortgaging with another lender and I'll avoid any additional costs on the valuation side.

The downside of course if that I'd do a product transfer on the existing mortgage in November at a higher interest rate, but the additional borrowing would be on a better rate. Perhaps I should ask some solicitors for quotes of their fees between remortgages and just paying off the HTB with an additional loan through an existing lender.

chanz4

ccdorset said:

Hello,

My 5 year fixed rate of 2.69% with Halifax comes to an end on 31st Jan 2023. I purchased the property through the Help to Buy scheme, so the 5 year interest free period will soon be up.

My plan was to just do a product transfer with Halifax and keep the HTB loan separate for now, however, I won’t be able to negotiate a new deal until 3 months before the deal ends. So I’m looking at early November.

I’m really concerned about the prospect of what interest rates could be like come then, so I’m thinking if I opt to remortgage elsewhere, I can then book in a rate early next month as the AIP is valid for 6 months, which will hopefully be lower than what I could find in November. If I go down this route I’d want to pay off the HTB loan with the new mortgage, as I don’t want to pay fees to postpone the second charge and then have to pay fees again to redeem later down the line.

I will need to get a RICS valuation for the HTB agency Target, but I understand that is only valid for 3 months. What I’m confused about is I will need to get this valuation next month, so that I can find out how much the property will be valued for HTB purposes, and subsequently confirm how much I will need to borrow to pay it off, as it will be dependent on any price increase/decrease.

If the RICS valuation is only valid for 3 months and I’m 6 months away from the remortgage actually going through, I am guessing I would need to pay for another RICS valuation nearer the time?

Then from what I understand any legal fees paid for by the new lender would only be standard and I’ll therefore have solicitors fees on top for the HTB element.

Another dilemma is if I go through all this now and pay out all these fees, then Halifax come up with a decent product transfer offer in November, I would have wasted money on fees and valuations. On the other hand, if I wait then I could find myself with a much higher rate come November.

Finding all of this very complicated! Any advice greatly appreciated!

Thanks :-)

were with halifax on htb the rates are really good for years

chanz4

ccdorset said:

kingstreet said:

https://www.gov.uk/guidance/how-to-remortgage-your-help-to-buy-home-and-borrow-more-money

"How long your valuation is valid for

Your valuation report is valid for 3 months from the date it was produced.

If your remortgage has not been completed within this time, you’ll need to get a letter from the surveyor saying it can be extended for another month.

If the remortgage has still not been completed after the extra month, our administrator will tell you that you need to get a ‘desktop valuation’ (where the property is valued without the surveyor visiting it in person)."

There may be cost involved but it shouldn't be as high as the original valuation cost.

Thank you, I'm wondering if it would be easier for me to just do an additional borrowing application with Halifax now to pay off the HTB loan. I'm thinking the solicitors fees should be lower than if I was remortgaging with another lender and I'll avoid any additional costs on the valuation side.

The downside of course if that I'd do a product transfer on the existing mortgage in November at a higher interest rate, but the additional borrowing would be on a better rate. Perhaps I should ask some solicitors for quotes of their fees between remortgages and just paying off the HTB with an additional loan through an existing lender.

ccdorset said:

kingstreet said:

https://www.gov.uk/guidance/how-to-remortgage-your-help-to-buy-home-and-borrow-more-money

"How long your valuation is valid for

Your valuation report is valid for 3 months from the date it was produced.

If your remortgage has not been completed within this time, you’ll need to get a letter from the surveyor saying it can be extended for another month.

If the remortgage has still not been completed after the extra month, our administrator will tell you that you need to get a ‘desktop valuation’ (where the property is valued without the surveyor visiting it in person)."

There may be cost involved but it shouldn't be as high as the original valuation cost.

Thank you, I'm wondering if it would be easier for me to just do an additional borrowing application with Halifax now to pay off the HTB loan. I'm thinking the solicitors fees should be lower than if I was remortgaging with another lender and I'll avoid any additional costs on the valuation side.

The downside of course if that I'd do a product transfer on the existing mortgage in November at a higher interest rate, but the additional borrowing would be on a better rate. Perhaps I should ask some solicitors for quotes of their fees between remortgages and just paying off the HTB with an additional loan through an existing lender.

ccdorset said:

kingstreet said:

https://www.gov.uk/guidance/how-to-remortgage-your-help-to-buy-home-and-borrow-more-money

"How long your valuation is valid for

Your valuation report is valid for 3 months from the date it was produced.

If your remortgage has not been completed within this time, you’ll need to get a letter from the surveyor saying it can be extended for another month.

If the remortgage has still not been completed after the extra month, our administrator will tell you that you need to get a ‘desktop valuation’ (where the property is valued without the surveyor visiting it in person)."

There may be cost involved but it shouldn't be as high as the original valuation cost.

Thank you, I'm wondering if it would be easier for me to just do an additional borrowing application with Halifax now to pay off the HTB loan. I'm thinking the solicitors fees should be lower than if I was remortgaging with another lender and I'll avoid any additional costs on the valuation side.

The downside of course if that I'd do a product transfer on the existing mortgage in November at a higher interest rate, but the additional borrowing would be on a better rate. Perhaps I should ask some solicitors for quotes of their fees between remortgages and just paying off the HTB with an additional loan through an existing lender.

ccdorset said:

kingstreet said:

https://www.gov.uk/guidance/how-to-remortgage-your-help-to-buy-home-and-borrow-more-money

"How long your valuation is valid for

Your valuation report is valid for 3 months from the date it was produced.

If your remortgage has not been completed within this time, you’ll need to get a letter from the surveyor saying it can be extended for another month.

If the remortgage has still not been completed after the extra month, our administrator will tell you that you need to get a ‘desktop valuation’ (where the property is valued without the surveyor visiting it in person)."

There may be cost involved but it shouldn't be as high as the original valuation cost.

Thank you, I'm wondering if it would be easier for me to just do an additional borrowing application with Halifax now to pay off the HTB loan. I'm thinking the solicitors fees should be lower than if I was remortgaging with another lender and I'll avoid any additional costs on the valuation side.

The downside of course if that I'd do a product transfer on the existing mortgage in November at a higher interest rate, but the additional borrowing would be on a better rate. Perhaps I should ask some solicitors for quotes of their fees between remortgages and just paying off the HTB with an additional loan through an existing lender.

ccdorset said:

kingstreet said:

https://www.gov.uk/guidance/how-to-remortgage-your-help-to-buy-home-and-borrow-more-money

"How long your valuation is valid for

Your valuation report is valid for 3 months from the date it was produced.

If your remortgage has not been completed within this time, you’ll need to get a letter from the surveyor saying it can be extended for another month.

If the remortgage has still not been completed after the extra month, our administrator will tell you that you need to get a ‘desktop valuation’ (where the property is valued without the surveyor visiting it in person)."

There may be cost involved but it shouldn't be as high as the original valuation cost.

Thank you, I'm wondering if it would be easier for me to just do an additional borrowing application with Halifax now to pay off the HTB loan. I'm thinking the solicitors fees should be lower than if I was remortgaging with another lender and I'll avoid any additional costs on the valuation side.

The downside of course if that I'd do a product transfer on the existing mortgage in November at a higher interest rate, but the additional borrowing would be on a better rate. Perhaps I should ask some solicitors for quotes of their fees between remortgages and just paying off the HTB with an additional loan through an existing lender.

about 1k will cost to pay the htb inc survey and taget fee

ccdorset

Thanks, yes I must admit I would prefer to stay with Halifax if I can. Just all depends on cost.

chanz4

ccdorset said:

Thanks, yes I must admit I would prefer to stay with Halifax if I can. Just all depends on cost.

we brought in 2013, and been with them ever since on new deals, always very competitve

ccdorset

Well, I've decided to go with a full remortgage with another lender, rather than a product transfer with additional borrowing, as I want to secure the best rate I can.

RICS Surveyor is booked for 5th August to carry out the valuation for the HTB agency. It will be interesting to see their valuation as Halifax currently estimate my flat to be worth about 40k more than I do!

chanz4

ccdorset said:

Well, I've decided to go with a full remortgage with another lender, rather than a product transfer with additional borrowing, as I want to secure the best rate I can.

RICS Surveyor is booked for 5th August to carry out the valuation for the HTB agency. It will be interesting to see their valuation as Halifax currently estimate my flat to be worth about 40k more than I do!

halifax desktop valuation is way out