Help To Buy - Remortgage to pay loan

Jones87

Hi,

We're looking at remortgaging and paying off the full H2B loan. Does anyone know the process for this? It's probably just me but the Gov. site is confusing and contradicts itself. 

The "Request to remortgage and borrow more money form" doesn't allow you to provide any information to confirm how much you pay off.

Any help would be much appreciated. 

silvercar

Why do you want to pay it off? I’d only do so if the interest rate on your mortgage was less than the interest rate on the HTB - unlikely at the moment - or if I expected my property price to rise rapidly in the next few years.

kingstreet

The amount you repay is the percentage of the property value established by a valuation by a Chartered Surveyor.

GixerKate

Just going through this process now, you'll need a solicitor who is experienced with Help To Buy and a mortgage advisor who is familiar with it all is a good idea too.

Essentially you will need to pay back the equity loan based on a current valuation not the value of the property when you bought it.  To finalise the amount you need to back back you will need to get a RICS survey done and that needs to be submitted to Help To Buy as part of the process.  The final amount is then agreed and sent to your solicitor to be included as part of the re-mortgage completion process.

Timing is key, the RICs survey is only valid for a certain amount of time (I think its 3 months) so you need to time it with your re-mortgage.

SandyShores

We've just gone through this process and we used our original broker to remortgage.  We didn't have to pay for a solicitor as that was all done through the new lender.  First thing was the valuer - we used the one recommended by the broker as it included an ability to extend if necessary - around £200.  We did the H2B application form for repaying, which was also £200.  We didn't have to pay for a solicitor as the legal part was all handled by our new lender.   Our broker fee was around £300 and worth every penny as they guided us to do the time essential things early and made loads of calls on our behalf - felt like there were lots of forms to fill in and hoops to jump through too - probably because we were switching lenders and also to a lender I don't have a current account with.  Now that we have paid off the H2B I feel like the next remortgage will be much simpler and we could manage it ourselves.  In fact I'd be tempted to stay with the same provider as it seems like it would be really simple.