Are you a homeowner who used the Help to Buy scheme to step onto the property ladder? If so, you may be approaching the end of your initial mortgage deal and wondering about your next steps. In this blog post, we’ll explore the concept of Help to Buy remortgages and how they can help you navigate the next stage of your homeownership journey.

Understanding Help to Buy Remortgages

The Help to Buy scheme has been instrumental in assisting first-time buyers and existing homeowners in purchasing a property with a smaller deposit. However, as the initial fixed-rate or interest-free period of your Help to Buy mortgage comes to an end, it’s essential to consider your options carefully.

A lot of lenders will require you to get mortgage advice for your remortgage to ensure you are aware of all of your options.

A Help to Buy remortgage involves switching from your existing Help to Buy mortgage to a new mortgage product, often with different terms and conditions. This process allows you to secure a competitive mortgage deal while continuing to benefit from the equity built up in your home.

Key Benefits of Help to Buy Remortgages

  1. Access to Better Rates: Remortgaging provides an opportunity to access lower interest rates or more favorable terms than your current mortgage deal, potentially saving you money over the long term. While your current lender will often write to you with new products, this doesn’t give you access to the whole market or all of your options.
  2. Flexible Repayment Options: When you remortgage we will discuss if you have the option of taking money out of your property to pay a lump sum off your help to buy loan.
  3. Review your mortgage terms: Your advisor will discuss your personal circumstances and plans for the property to look at how long to fix in a new product for, how long to pay off the full mortgage and what your aims are for the mortgage. For example if you look at clearing some of the help to buy equity loan, you might want to increase the full term of the mortgage to keep the mortgage payments affordable.

Things to consider for a help to buy remortgage;

  • The interest on your help to buy equity loan will start after 5 years and increase each year so you will need to factor these payments in to your outgoings
  • The help to buy equity loan can only be cleared through a lump sum of half or all of the loan so a lot of people find this more manageable through adding it in to the mortgage
  • If you are clearing some of the help to buy you can find more information on this link Repay your Help to Buy: Equity Loan – GOV.UK (www.gov.uk)

Conclusion

Help to Buy remortgages offer a valuable opportunity for homeowners to secure competitive mortgage deals and optimise their financial circumstances. By understanding the benefits of remortgaging, researching available options, and seeking professional advice, you can make informed decisions about your next steps for your house.

If you’re approaching the end of your Help to Buy mortgage term, now is the time to explore remortgage options and unlock the full potential of your homeownership journey.

Click here to arrange a call with one of our advisors to get your remortgage underway

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