top of page
Expert Advice on Remortgaging your Help to Buy Equity Loan
  • Securing the best deal when remortgaging your help to buy property.

  • Planning for the end of your interest free period and actions to prepare for this.

  • Refinancing options to repay all or part of your help to buy equity loan.

Securing the best mortgage deal on your Help to Buy property

 

If you're nearing the end of your current mortgage rate, whether or not you are still within the interest free period of your Help to Buy equity loan, it can be challenging to secure the best deal.

There are additional complexities to consider;

  • A smaller number of lenders offering products.

  • The need to obtain a RICS valuation to determine your current equity position.

  • The requirement to instruct a specialist conveyancer.

  • Liaising with the Help to Buy scheme administrators.

  • Understanding the additional costs and fees involved and their impact on your application.

 

It's understandable if this feels like a daunting task, and you may not know where to turn for help.

Fortunately, our Team has a wealth of knowledge about the Help to Buy scheme and the mortgage industry. We can provide expert assistance to help you find the perfect mortgage solution and navigate the additional complexities you'll face.

We will;

  • Search of the whole market to identify the best rates and lenders available.

  • Instruct a RICS valuation and conveyancing on your behalf from our Network, In Partnership’s, panel of approved providers.

  • Complete and submit your application for approval to the Help to Buy administrators and support you with any follow-up queries they may have.

  • Provide a comprehensive financial review and ensure that any recommended options are affordable.

 

Planning for, and refinancing, the end of your interest free period on your Help to Buy Equity Loan

Preparing for the end of your interest-free period on your Help to Buy Equity Loan is crucial for managing your finances and maintaining ownership of your home.

When the initial 5-year interest free period ends, you will have to start making interest payments on the percentage of your home that is owned by the help to buy scheme, although, you will not gain any additional equity share in the property by doing so.

Whilst the year 6 rate of 1.75% may be lower than current mortgage rates, it is important to understand that from year 7 onwards the situation may look very different.

  • Interest charged from year 7 onwards is at 2% above inflation, which at current rates could have a dramatic impact on your finances.

  • There exists the potential for your home to be repossessed if you are unable to maintain the interest payments due on the help to buy equity loan.

  • As the loan isn’t for a fixed amount, rather it is linked to the value of your property, increasing house prices can mean early re-financing is more cost-effective overall, even if at a higher rate initially.

  • Refinancing allows you to repay towards the capital, as well as interest, and gain an 100% equity share of your property.

  • If you are planning to move home, your help to buy equity loan is required to be paid in full. The potential impact of this on the affordability of your next house purchase needs to be considered.

 

Therefore, it's never too early to start planning and considering important factors such as;

  • The impact of interest repayments on your budget.

  • The current value of your property and the amount you are required to repay.

  • Your longer-term plans, for example if you intend to remain in the property or move home.

  • The different refinancing options available for you to consider.

 

This isn’t something you need to do alone; our expert mortgage advisers are here to help.

Whatever stage in your help to buy equity loan you are at, we will put together a comprehensive Mortgage Capacity Report providing in-depth insights into your current financial position, provide bespoke projections based on market forecasts and advice on which routes may be the most appropriate for you.

Where re-financing is desirable, we will then:

  • Search the whole of market to identify the best rates and lenders available.

  • Instruct a RICS Valuation and conveyancing on your behalf from our panel of approved providers.

  • Complete and submit your application for approval to the help to Buy administrators and support you with any follow up queries they may have.
     

Your home may be repossessed if you do not keep up repayments on your mortgage.

 

Useful links

Homebuyers Guide to Help to Buy – Equity Loan

Help to Buy – Equity Loan (general info)

How to repay your Equity Loan when remortgaging

How to remortgage your Help to Buy home without borrowing more money

How to remortgage your Help to Buy home and borrow more money

Help to Buy – Equity Loan administration fees

 

Find a RICS Valuer

Find a conveyancer  

bottom of page