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Remortgage to Pay Off HTB Equity Loan
JohnDoe23
Posts: 2 Newbie
I’m just looking for advice from those who have remortgaged to include the HTB equity loan.
Did you follow these steps exactly, did you speak to a mortgage broker, financial advisor, etc?
Any further advice?
I have seen guidance on the Gov.UK website - How to repay your equity loan when you remortgage (I can’t post links yet!).
Did you follow these steps exactly, did you speak to a mortgage broker, financial advisor, etc?
Any further advice?
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Comments
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With interest rates where they are why repay?0
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We will start paying the interest for HTB loan in May 24, and our current offer of for our mortgage ends at the end of April (as it goes upto BEBR + 3.49%).We are looking at remortgaging to get a new deal and we would like to not have the equity loan looming over us.0
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This comes up regularly on here.
Key points are:
You buy back the equity based on today's valuation. Therefore, the key issue is where are values going? If they are dropping - the sooner you buy back, the more you overpay.
If values are rising, the sooner you buy back, the less you overpay.
If values are static what is the value in buying back the equity? The payments on the equity loan will be much lower than the interest on a mortgage.
You initially have to get a valuation from a RICS valuer. You then take that to the H2B Team and they will give you a buy out figure. You then raise the funds to make the buy out (cash of lending) and appoint a Solicitor to sort it.I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
Just seen this web page - of course no guidance on the key issue of whether you should be repaying your equity loan.JohnDoe23 said:I have seen guidance on the Gov.UK website - How to repay your equity loan when you remortgage (I can’t post links yet!).I am a Mortgage Broker
You should note that this site doesn't check my status as a Mortgage Broker, 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.0 -
exepect about 1k sol fee alsoDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
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The interest will be lower than the interest on your mortgage. You would be better of keeping the equity loan, unless you expect house prices to increase rapidly.JohnDoe23 said:We will start paying the interest for HTB loan in May 24, and our current offer of for our mortgage ends at the end of April (as it goes upto BEBR + 3.49%).We are looking at remortgaging to get a new deal and we would like to not have the equity loan looming over us.I'm a Forum Ambassador on the housing, mortgages, student & coronavirus Boards, money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0
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