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    • ginger tosser
    • By ginger tosser 20th Apr 17, 11:45 PM
    • 6Posts
    • 6Thanks
    ginger tosser
    Early repayment of help to buy.
    • #1
    • 20th Apr 17, 11:45 PM
    Early repayment of help to buy. 20th Apr 17 at 11:45 PM

    We are looking at HTB with a 55% deposit, 25% mortgage (minimum allowed) and 20% HTB equity loan. We actually have enough saved for a 70% deposit.
    My question is, if we repaid the mortgage from the left over savings (plus a bit more hard work saving) within the first 5 years can we carry on just paying the 1.75%+ fee for the next 20 years or does the HTB equity have to be redeemed at the same time as the mortgage?
Page 1
    • glosoli
    • By glosoli 21st Apr 17, 12:26 AM
    • 673 Posts
    • 391 Thanks
    • #2
    • 21st Apr 17, 12:26 AM
    • #2
    • 21st Apr 17, 12:26 AM
    I know it's not an answer to your question and perhaps demonstates my naiveity regarding help to buy but why would you bother with it when you have over a 50% deposit to put down?

    I just assumed it was for people who could just about scrape together a 5 to 10% deposit.
    • kingstreet
    • By kingstreet 21st Apr 17, 1:44 AM
    • 33,367 Posts
    • 18,052 Thanks
    • #3
    • 21st Apr 17, 1:44 AM
    • #3
    • 21st Apr 17, 1:44 AM
    No. The HTB loan cannot remain if the mortgage is repaid.
    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.
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