Borrow more with Help to Buy equity loan

worriedegg

Good evening all, just looking for some clarification if possible! 

We have a help to buy equity loan registered against our home and have been going through the remortgaging process.

We have asked to lend more for some home improvements, and our lender (Halifax) advised it wouldn’t be an issue to do so after getting permission from htb. 

The mortgage adviser said it was quite common and although we would have to pay a solicitor and some fees it wouldn’t be a problem and many had done the same in the past. They are aware of why we would want to borrow more. 

Having looked online it seems this isn’t the case, worryingly it looks like we wouldn’t get permission to lend more as the changes aren’t due to a health need.

We are now getting quotes and paying for plans to be drawn up, and I’d like to try and avoid wasting any more money on this if this isn’t going to be possible.

We’ve called the helpline number and been unable to get through to the help to buy team, and haven’t heard back via email.

Has anyone else managed to secure further borrowing with an equity loan, or offer any guidance? 

Thanks in advance

Caz3121

I assume the changes are classed as structural so needing permission https://www.gov.uk/guidance/how-to-make-structural-alterations-to-your-help-to-buy-home is paying off htb loan with remortgage an option?

worriedegg

Thanks for replying, no I don’t think at the moment we would qualify for the amount needed to pay it back as my husband has recently become self employed and so on a reduced income. 

Looks like back to the drawing board! 

chanz4

any improvement, do look how much extra on top will cost you when you redeem

amnblog

I'm afraid the Halifax Adviser you dealt with is mistaken.

It is against the Help to Buy rules to raise extra when re-mortgaging (unless the funds are intended to repay the Help to Buy loan in full or part)

worriedegg

@amnblog thanks for confirming I thought so, I haven’t heard back from help to buy yet. I’m wondering if you know if we could in theory pay some of the loan back and still do some of the works? 

Many thanks again 

kingstreet

worriedegg said:

@amnblog thanks for confirming I thought so, I haven’t heard back from help to buy yet. I’m wondering if you know if we could in theory pay some of the loan back and still do some of the works? 

Many thanks again 

No. You have to repay the whole loan so the second charge is removed. Then all HTB involvement ends.

missile

You may be able to get a personal loan to fund improvements.