Help to Buy repayment - All you need to know!
If you had bought your house with the Help to Buy Loan and you would like to borrow extra on Re-mortgage to be able to clear that loan, it may be possible but you need to bear in mind that there are a couple of requirements you need to meet:
You will need your house valued by a RICS Certified Surveyor – this valuation is only valid for 3 months so plan the process in advance. You need to pay for this survey.
You could repay your equity loan in full or in part
You will need to complete a redemption form and send it to Target together with an administration fee of ca. £200- £250
You will receive a redemption quote based on the amount of loan you wish to settle (full – 20% of property value, or partial – 10% of property value)
You will need to appoint a solicitor to deal with the Help to Buy loan repayment process, so bear in mind the extra cost for legal fees and solicitor fees as well.
You will need to check whether you can actually afford to borrow more so before you do anything at all, contact a mortgage broker to check your affordability and credit worthiness.
There are other ways to settle the Help to Buy loan so if you need more information, check it here: https://www.gov.uk/.../how-to-repay-your-equity-loan...