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Help to buy redemption worth it?
rommy
Posts: 62 Forumite
Hello everyone,
I am getting near to my 2 year fixed mortgage term and now in a position where I can pay back HTB loan by remortgage.
Just to give you a bit of back ground, I bought my apartment for £285k with 35% HTB (£99.75k). It was a new build apartment and unfortunately the value has not moved much. I have seen apartments similar to mine selling for £300k on average recently.
At one hand it is a no brainer not to pay equity loan back as I am currently paying £188 per month which comes to roughly 2.26%. If I do settle the loan I will have to pay around 4% minimum.
What is making me confused, it is not easy to predict how much the value of apartment will go up in next few years. As it was a new build I would imagine most of the deprecation is done as new build initially loss value and the next few years value could go up by a fair margin.
I am planning to arrange a valuation in any case just to see if the numbers make sense. I would really appreciate your feedback on what could be the best possible move looking at the current economic situation and housing market for apartments in UK in general.
Thank you
I am getting near to my 2 year fixed mortgage term and now in a position where I can pay back HTB loan by remortgage.
Just to give you a bit of back ground, I bought my apartment for £285k with 35% HTB (£99.75k). It was a new build apartment and unfortunately the value has not moved much. I have seen apartments similar to mine selling for £300k on average recently.
At one hand it is a no brainer not to pay equity loan back as I am currently paying £188 per month which comes to roughly 2.26%. If I do settle the loan I will have to pay around 4% minimum.
What is making me confused, it is not easy to predict how much the value of apartment will go up in next few years. As it was a new build I would imagine most of the deprecation is done as new build initially loss value and the next few years value could go up by a fair margin.
I am planning to arrange a valuation in any case just to see if the numbers make sense. I would really appreciate your feedback on what could be the best possible move looking at the current economic situation and housing market for apartments in UK in general.
Thank you
0
Comments
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If you think the property value will fall, remain the same, or only increase a little - stick.
If you think the property value will increase at a higher rate - remortgage.
How do you know? You don't. You're going to have to estimate based on what you know about property in your area.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, 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. Please do not send PMs asking for one-to-one-advice, or representation.1 -
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.1
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