Remortgage to Repay a Maturing Help to Buy Equity Loan
£295,000 · 25 years · 4.49% fixed 5 yrs. A homeowner who had purchased using Help to Buy in 2019 was approaching the end of the five-year interest-free period on her equity loan.
The Client
Homeowner who
The Challenge
A homeowner who had purchased using Help to Buy in 2019 was approaching the end of the five-year interest-free period on her equity loan. The equity loan would begin accruing fees, and she wanted to remortgage to repay it in full. The combined first mortgage plus equity loan repayment required careful LTV management.
Our Solution
Doulton assessed the current property value and calculated the LTV on repayment of the equity loan. The resulting LTV of 72% was within standard mortgage parameters. A lender experienced in Help to Buy equity loan redemption remortgages was selected, as the legal process for releasing the equity loan charge involves Homes England and requires co-ordination.
The Outcome
Remortgage completed. Help to Buy equity loan repaid in full. Homes England charge removed from the title. The client now has a single straightforward mortgage with no equity loan fees accruing. Total saving versus leaving the equity loan in place: estimated £4,800 in the first five years. Key highlights: Help to Buy equity loan repaid and Homes England charge removed; Lender experienced in equity loan redemption process selected; Estimated £4,800 saving versus leaving equity loan in place.