We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
The Forum now has a brand new text editor, adding a bunch of handy features to use when creating posts. Read more in our how-to guide
Repaying Help to Buy
Yellabowley
Posts: 118 Forumite
Evening all,
We bought our new build house on the ‘Help to Buy’ scheme back in 2018. Two years ago we took advantage of the low interest rates and secured a mortgage fixed for 5 years (possibly the best financial decision I’ve ever made!). So at present we have a low rate repayment mortgage and we are now paying the interest only on the help to buy portion.
Now the issue we have is that we are finally in a position to start improving our home, but ideally I want to pay off the help to buy before I start doing things that will increase the value of the house, so that the government don’t get a slice of the value I add. The way we had planned to do this was to simply remortgage. We would need a 65% mortgage (roughly) to do this but of course with the rates being as they are it would be madness to exit our low fixed interest rate early.
Is there a way we can get a second mortgage to pay off the help to buy then merge the two when we renew our main mortgage? I don’t even know if that’s really possible but I can’t think of any other way to do it without fully remortgaging and losing the interest rate. The help to buy is too large for a personal loan so the only other thing I can see us doing is either not improving the house for another 3 years, or just going ahead with improvements knowing that the government are gonna get their bit.
Thanks in advance for any advice.
We bought our new build house on the ‘Help to Buy’ scheme back in 2018. Two years ago we took advantage of the low interest rates and secured a mortgage fixed for 5 years (possibly the best financial decision I’ve ever made!). So at present we have a low rate repayment mortgage and we are now paying the interest only on the help to buy portion.
Now the issue we have is that we are finally in a position to start improving our home, but ideally I want to pay off the help to buy before I start doing things that will increase the value of the house, so that the government don’t get a slice of the value I add. The way we had planned to do this was to simply remortgage. We would need a 65% mortgage (roughly) to do this but of course with the rates being as they are it would be madness to exit our low fixed interest rate early.
Is there a way we can get a second mortgage to pay off the help to buy then merge the two when we renew our main mortgage? I don’t even know if that’s really possible but I can’t think of any other way to do it without fully remortgaging and losing the interest rate. The help to buy is too large for a personal loan so the only other thing I can see us doing is either not improving the house for another 3 years, or just going ahead with improvements knowing that the government are gonna get their bit.
Thanks in advance for any advice.
0
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 353.6K Banking & Borrowing
- 254.2K Reduce Debt & Boost Income
- 455.1K Spending & Discounts
- 246.7K Work, Benefits & Business
- 603.1K Mortgages, Homes & Bills
- 178.1K Life & Family
- 260.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards