Equity in my house and Repaying Help To Buy before 5 years ends

dan8030

Good afternoon,

I am looking for some advice please.

I have approx. 18 months left on my current mortgage deal with a rate at 2.04%. However, I took out the Help to Buy Equity Loan (20%) to allow me to get the mortgage deal initially.

I believe that the value of my property has increased, I am getting a couple of free valuations done in the next couple of weeks to get a free for how much it might have increased.

My question is...if the value of my property has increased by more than what I owe on the H2B equity loan (my original loan was £40,800) is it possible to release some equity in the property to pay off the loan before the 5 years interest free runs out?

If so how is this likely to impact my when current deal with my mortgage provider runs out next year?

Thanks in advance.

dimbo61

Well this all depends on the figures 
How much equity have you built up ?
Income ? 
Outstanding balance on mortgage and how much is the HTB loan amount at current value. 
Then you need to sit down with a whole of market mortgage broker to see what rates they can find. 

silvercar

You need to compare the mortgage rate on the Main mortgage against what you pay on the HTB component. The latter is interest free for 5 years and then builds up gradually. Unless you feel the property value will increase rapidly (as you pay back the % you borrowed as a %age of the current valuation) it may cost you more in interest over the next few years.

amnblog

Yes, if value has increased you can usually borrow up to 85% of the new value to pay of the EL (or half of it).