Remortgage- HTB & debt

Daniellexxx23

Our fixed term runs out this year and our help to buy enters its 6th year so we were hoping to remortgage and pay the help to buy off but we have some debt and I’m concerned we won’t be able to do this. 

As a couple we earn around £60k a year, have £20k on a credit card, our current mortgage is for just under £100k and the help to buy is around £35k - We both have a good credit score with no missed payments. 

What do you think the likelyhood of us being able to remortgage is? 

If we can’t, will we be able to fix in for another year or 2 and pay the interest part of the HTB until our debt is in a better place? 

I just don’t want to lose the house. 

JMA74

As you have no missed payments then i cant see that level of debt causing you issues on a general basis. 
A select few lenders may be a bit funny on a debt to income ratio but not something that would worry the majority of lenders. 

dimbo61

Time to find and speak to a good mortgage broker who deals in HTB 
You might be able to pay off the HTB loan and clear some of the CC debt if you have enough equity in your now 6 year old home.
Why have you run up £20K in CC debt !

San_Jose

Not a mortgage advisor or anything but just out of curiousity why are you looking to pay off the HTB loan first, only asking as the interest on this in the 6th year etc will be qlot lower than the rest of your mortgage is all. Obviosely if you are moving etc then its a mute point.

Daniellexxx23

I think just because our fixed term was up at the same time. 

I have thought about looking at fixed deals for another year or 2 and continuing to pay interest only on the HTB as I think these combined could be less than paying the increased mortgage amount but I’m not 100% what HTB payments look like after year 6?! 

This option does give us chance to get the credit card debt down. 

renegade1

The HTB loan amount that you repay is based on the house value at the time of redemption. House prices are forecast to fall 9% throughout 2023 and 2024 so i'd keep the HTB loan for another 2 years and just switch to a a 2 year fix.

With a £35k loan you're looking at monthly repayments of about £50 in year 6 increasing to about £55 in year 7.

Nath4n

Just to reiterate some of the existing comments here, and for relevance of other forum users viewing this thread:

If you are not selling up, there is (on paper) no current value in redeeming HTB loans, in fact the very opposite. The interest rate post year 5 is significantly lower than current mortgage rates, and house values are forecast to decline over the near term. So you'd essentially be flushing money down 2 separate drains..

kingstreet

Another point in favour of considering keeping the HTB loan for longer.

The LTV for your next mortgage product is going to be lower if the HTB loan isn't included, so a better rate should result.

chanz4

I redeemed myn just as the market changed, cost me a few grand overpaying them