Help to buy timeframe question

crazynorman

Hi, my current mortgage deal ends at the end of Feb 2023 and I'm looking to start the process of remortgaging and also borrowing more to pay my help to buy off in full.
As with the interest rates rising I want to get on with this now, how long ahead of schedule can I sort the help to buy aspect as I know if I say got a survey for the valuation next week it would only last for 3 months and I'm not looking to actually pay it off until Feb?

balayya389

We did this last year , it took us approx 2 months for process of clearing help2buy

SuboJvR

Hiya, I know it is appealing to clear off the Help to Buy so it's not "hanging over you", however do consider it carefully as with mortgage interest rates where they are now, there's every chance if you bring your Help to Buy loan into your mortgage you would be paying more interest on it than if you left it in the Help to Buy for now.

e.g. from year 6 of ownership, Help to Buy interest is 1.75% (this is less than current mortgage rates).  From year 7 onward, it increases by a rate linked to CPI, but it will be still some years before it gets over even 3% using that calculation.

crazynorman

thank you for replies, currently in year 6 and yes i'm trying to work out too if its worth leaving it and instead overpaying my mortgage or save more to try and pay it off with savings

SuboJvR

crazynorman said:

thank you for replies, currently in year 6 and yes i'm trying to work out too if its worth leaving it and instead overpaying my mortgage or save more to try and pay it off with savings

It feels like the worst choice is to voluntarily move it to a higher interest rate for us at least - but you need to work out the calculation over however many years to determine that for sure for yourself.  Remember that the rate is linked to inflation/CPI measures rather than the Bank of England base rate.  Everything going so crazy now is designed to try and bring inflation down. 

Our current mortgage fix ends in August 2024 or Year 7 of our Help to Buy.  Like you I was worrying about the possibilities until reading a few posts here made me realise that having it sit there for a few years more on the (likely) lower interest rate is probably preferable.

The "year 6" deadline always felt like the eek moment with Help to Buy as in "ok, time to sort it out now!" but given the situation with the actual mortgages increasing and being so volatile the Help to Buy aspect feels like a more known quantity, unless they do something to faff around with that.  Essentially the time to sort it out was going to be when it cost more than having a bigger mortgage loan, right?  That's sort of getting further away.

There's other factors - do you want to move for example, what the actual price of the house and the HtB portion will do when you do come to try and redeem - to consider too for everyone of course.  I just personally want to make sure we can keep this house  

chanz4

I kept the h2b until I had enough in savings, completed it last week.  With house prices going up worth looking at

Neverending_Story

We're paying ours off through remortgage as you can't do any property improvements on Help to Buy... not even a tiny conservatory.  Pay them off and have the house to yourself.

Whizz51

Hello and please share your advice or point me in the right direction.

The HTB loan was paid into the solicitor's account is record time. Now, after an inheritance, I'd like to pay it back and just get the weight from around my neck.

It has been six months since making my first enquiry with Target. All the paperwork has been submitted and Target's fee paid but I'm still waiting to hear from them.

# Has anybody else had this problem?

# If it were to drag on and go past the date when I start to pay interest can I still be held responsible for payment even if I've been trying to pay for over a year?

Thank you!

chanz4

Whizz51 said:

Hello and please share your advice or point me in the right direction.

The HTB loan was paid into the solicitor's account is record time. Now, after an inheritance, I'd like to pay it back and just get the weight from around my neck.

It has been six months since making my first enquiry with Target. All the paperwork has been submitted and Target's fee paid but I'm still waiting to hear from them.

# Has anybody else had this problem?

# If it were to drag on and go past the date when I start to pay interest can I still be held responsible for payment even if I've been trying to pay for over a year?

Thank you!

I have a short cut if you want, did ours within 3 weeks

balayya389

Whizz51 said:

Hello and please share your advice or point me in the right direction.

The HTB loan was paid into the solicitor's account is record time. Now, after an inheritance, I'd like to pay it back and just get the weight from around my neck.

It has been six months since making my first enquiry with Target. All the paperwork has been submitted and Target's fee paid but I'm still waiting to hear from them.

# Has anybody else had this problem?

# If it were to drag on and go past the date when I start to pay interest can I still be held responsible for payment even if I've been trying to pay for over a year?

Thank you!

Did you try calling target ? , in our case we had to call them to get things moving 

chanz4

balayya389 said:

Whizz51 said:

Hello and please share your advice or point me in the right direction.

The HTB loan was paid into the solicitor's account is record time. Now, after an inheritance, I'd like to pay it back and just get the weight from around my neck.

It has been six months since making my first enquiry with Target. All the paperwork has been submitted and Target's fee paid but I'm still waiting to hear from them.

# Has anybody else had this problem?

# If it were to drag on and go past the date when I start to pay interest can I still be held responsible for payment even if I've been trying to pay for over a year?

Thank you!

Did you try calling target ? , in our case we had to call them to get things moving 

60 min wait at the moment most days