We're aware that some users are experiencing technical issues which the team are working to resolve. Thank you for your patience.
📨 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!

Remortgaging out a HTB loan

Options
I've been looking into HTB mortgages and my main concern is having to pay back that lump sum after 5 years before it starts gaining interest. Lots of people have mentioned "remortgaging it out" but I wondered what everyone's opinions are on this? An average 4 bed family home around our way is £250k, meaning a 20% loan would be £50k - that's a hell of a lot of money to save up and pay back in 5 years.

Comments

  • amnblog
    amnblog Posts: 12,717 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    When do you need to start paying in back before you start paying interest.

    The interest payable is modest. Less than £30 a week on your example.
    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.
  • Dont forget that once that 5 years is up isnt a Repayment Loan its Interest only, unless you pay it back as Staircasing repayments; either 50%, or, the full amount of the H2B element. So 25k or 50k in your scenario.
This discussion has been closed.
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 350.6K Banking & Borrowing
  • 253K Reduce Debt & Boost Income
  • 453.4K Spending & Discounts
  • 243.6K Work, Benefits & Business
  • 598.4K Mortgages, Homes & Bills
  • 176.8K Life & Family
  • 256.8K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.1K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.