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?