A Help to Buy remortgage is a type of mortgage that allows homeowners who purchased their property using the Help to Buy equity loan scheme to remortgage and potentially access better interest rates or more favorable loan terms.
Under the Help to Buy equity loan scheme, the government provided a loan to eligible buyers that covered a percentage of the cost of a new build home. The borrower then needed to provide a deposit and secure a mortgage to cover the rest of the property’s value.
After the initial fixed-rate period of the Help to Buy mortgage ends, borrowers may choose to remortgage to a new lender. A Help to Buy remortgage allows borrowers to pay off their existing mortgage, including the equity loan, and replace it with a new mortgage.
By remortgaging, borrowers may be able to access lower interest rates, switch to a more suitable mortgage product, or release equity from their property. However, it’s important to note that not all lenders offer Help to Buy remortgages, and the eligibility criteria can be stricter than for regular mortgages.
Can I remortgage a Help to Buy property?
Yes, you can remortgage a Help to Buy property, but there are certain conditions you need to consider.
Firstly, if you have a Help to Buy Equity Loan, you will need to consider the terms of the loan. The Help to Buy Equity Loan is interest-free for the first five years, after which you will be charged interest on the loan. If you decide to remortgage, you will need to repay the loan, either in part or in full.
Secondly, you will need to consider the terms of your existing mortgage. If you have a fixed-rate mortgage, you may need to pay an early repayment charge if you remortgage before the end of the fixed-rate period.
It’s important to seek professional advice from a mortgage broker or financial advisor before remortgaging your Help to Buy property. They can help you navigate the process and ensure that you make the best decision for your financial situation.
How Can I Remortgage a Help to Buy?
If you have used the UK government’s Help to Buy scheme to purchase a property, you may be wondering about remortgaging. Here are some steps you can take to remortgage your Help to Buy property:
- Check your eligibility: Before you start the process of remortgaging, check with your lender or a mortgage advisor to see if you are eligible. You will need to have a good credit score and meet the lender’s affordability criteria.
- Find a remortgage deal: Research the market for the best remortgage deals available. You can use comparison sites to get an idea of what’s on offer, or you can consult a mortgage broker who can help you find a suitable deal.
- Consider your options: There are two main options when it comes to remortgaging a Help to Buy property. The first is to remortgage with the same lender, and the second is to switch to a new lender. Each option has its pros and cons, so make sure to weigh them up before making a decision.
- Check the equity loan: If you used the Help to Buy equity loan to purchase your property, you will need to consider how the loan will be affected by the remortgage. You may need to repay some or all of the loan when you remortgage, so make sure to factor this in when considering your options.
- Seek professional advice: Remortgaging can be a complex process, so it’s always a good idea to seek professional advice. A mortgage advisor or solicitor can help guide you through the process and ensure that everything is handled correctly.
Remember, remortgaging is a big financial decision, so make sure to consider all your options carefully and seek professional advice if needed.
If you are considering a help to buy remortgage, here are some steps you can take to get started:
- Review your current mortgage: Take a look at your current mortgage and determine when it is due to end. You should also find out if there are any early repayment charges associated with your existing mortgage.
- Check your eligibility for help to buy: To be eligible for help to buy, you must have originally used the scheme to buy your home. You must also still be living in the property and not have bought another home since purchasing your current property.
- Speak to a mortgage advisor: It’s important to speak to a qualified mortgage advisor who can guide you through the process and help you find the best deal. They can also advise you on whether a remortgage is the right option for you.
- Compare deals: Once you have spoken to a mortgage advisor, you should compare deals from a range of lenders. This will help you find the best deal for your circumstances.
- Apply for a mortgage: Once you have found a deal that you are happy with, you can apply for the mortgage. The lender will assess your eligibility and affordability before making a decision.
Remember to take your time and do your research to ensure you find the best help to buy remortgage deal for your needs.
Help to Buy Remortgage Broker
There are several benefits to using a Help to Buy mortgage broker when purchasing a home through the Help to Buy scheme. Here are some of the main advantages:
- Expertise and guidance: A Help to Buy mortgage broker is a specialist in the field and can provide valuable expertise and guidance throughout the home-buying process. They can explain the details of the scheme and help you understand your options, including which lenders offer Help to Buy mortgages, what interest rates are available, and how to qualify for the scheme.
- Access to exclusive deals: A Help to Buy mortgage broker may have access to exclusive deals and rates that are not available to the general public. This can help you save money and get the best possible mortgage for your needs.
- Time-saving: Searching for a mortgage can be a time-consuming process, especially if you’re not familiar with the market. A Help to Buy mortgage broker can save you time by doing the research for you, comparing different lenders and deals, and presenting you with the best options.
- Negotiation: A Help to Buy mortgage broker can negotiate with lenders on your behalf, potentially securing you better rates or terms. They can also help you understand any fees or charges associated with the mortgage, and help you avoid any hidden costs.
- Support throughout the process: A Help to Buy mortgage broker can provide ongoing support throughout the home-buying process, from the initial application to the completion of the sale. They can answer any questions you may have, provide guidance on the legal process, and help ensure a smooth transaction.
Overall, a Help to Buy mortgage broker can provide valuable expertise, save you time and money, and provide ongoing support throughout the home-buying process. If you’re considering purchasing a home through the Help to Buy scheme, it’s worth considering using a broker to help you navigate the process.
Which Mortgage lenders offer Help To Buy mortgages?
Help to Buy mortgages are designed to help first-time buyers get onto the property ladder. These mortgages are available from a range of different lenders in the UK, including:
- Barclays
- Halifax
- HSBC
- Lloyds Bank
- Nationwide
- NatWest
- Santander
- Virgin Money
It’s always a good idea to shop around and compare different mortgage deals from different lenders to find the best one for you. You may also want to consult with a mortgage broker who can help you find the most suitable Help to Buy mortgage for your individual circumstances.
Halifax Help To Buy
Halifax Help to Buy is a government-backed scheme aimed at helping first-time buyers and home movers in the UK purchase a property with a smaller deposit. The scheme is available for new-build properties and requires a minimum 5% deposit from the buyer.
Under the scheme, the government provides a loan of up to 20% (or 40% in London) of the property’s value, which is interest-free for the first five years. This loan is known as an equity loan and is repayable after 25 years or when the property is sold, whichever comes first.
Halifax is one of the mortgage lenders that offers Help to Buy mortgages, which are specifically designed for customers using the Help to Buy scheme. The mortgages are available for a range of terms and interest rates, and customers can choose from fixed or variable rate options.
To be eligible for Halifax Help to Buy, customers must be first-time buyers or existing homeowners who are selling their current property to purchase a new one. The property being purchased must be a new-build home from a registered Help to Buy builder, and the maximum purchase price varies depending on the region.
Overall, Halifax Help to Buy can be a useful option for those looking to buy a property with a smaller deposit, although it’s important to carefully consider the terms and conditions of the scheme and seek independent financial advice before making any decisions.