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Why you should repay Help to Buy in 2023: a mortgage broker's top tips

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If you used the Help to Buy scheme to purchase your home a few years ago, it's important to know that you'll need to start thinking about repaying your help to buy loan as soon as possible. In this video, we'll discuss why it's a good idea to repay your Help to Buy loan as soon as possible and how you can do it through remortgaging.
As a mortgage broker with years of experience, I've seen first-hand how delaying repayment of your Help to Buy loan can impact your finances and your future home-buying options. That's why I'll share some of my top tips for managing this debt and ensuring you're on track to owning your home outright.
So if you're a Help to Buy homeowner or thinking about using the scheme in the future, this video is a must-watch. Learn about the benefits of early repayment, the consequences of delaying, and how remortgaging can help you pay off your Help to Buy loan faster. Don't miss out on this valuable information from a trusted mortgage broker.
To visit our website you can follow this link:
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To book a free call with us you can click this link here:
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The form to repay your HTB loan can be found here:
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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE OR ANY OTHER DEBTS SECURED ON IT.
Vantage Mortgages Ltd is an Appointed Representative of PRIMIS Mortgage Network which is a trading name of Personal Touch Financial Services Limited. Personal Touch Financial Services Limited is authorised and regulated by the Financial Conduct Authority.
Our typical fee for arranging a mortgage is £500

Опубликовано:

22 авг 2024

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Комментарии : 16

@matthewleonard1402 10 месяцев назад

Interested to hear your thoughts on the following reasons why I think it is not a good idea to pay off help to buy right now. 1. The interest rate is only 1.75% in the first year then increase by CPI + 1-2% (dependant on when the loan was taken out). This will likely be 3-4% less than the current mortgage rates. 2. Interest payable on the H2B loan is only on the original balance taken out whereas if you remortgage to pay it off you are likely increasing the balance and paying higher interest. 3. Finally - and this is more speculation and where risk does come in…. But if house prices do decrease over the next year or so (as currently predicted) then you would have the opportunity of buying the loan out at a smaller amount. The risk is that house prices increase in the next couple of years. What do you think?

@mortgageadvice.vantage 10 месяцев назад

I agree completely! Its a tough one at the moment, its probably less appealing now than it has been. Personally I still would because I would want to just get it gone asap but I appreciate its all a bit of a gamble really. House prices could go down a bit but they could go up too so if you fix yourself in for a couple of years and keep HTB then that could cost you. basically there is no 100% guaranteed right answer, its just personal preference!

@leegreen287 7 месяцев назад

Very useful video 👍. For the reasons you've stated above, I agree that paying the HTB off now isn't ideal. The issue I currently have, is that I need to release some equity in my home (preferably with my current provider) but they say they can't, unless I pay off my HTB. They've advised that I just need the settlement figure for the HTB and they'll pay that off and then in 6 months time I can then remortgage again to then do what I need to do now. I'm desperate for the money now due to an injury keeping me out of work. Is there anything I can do?

@mortgageadvice.vantage 7 месяцев назад

Yes that is pretty much the case with lenders and borrowing more with HTB still in place. I do have an option with a specialist lender but they are expensive and the fees are quite high so it is not ideal! If you would like to know about that please do get in touch

@nls1809 7 месяцев назад

what can be the intrest rate of HTB interest rate for 2024 ? HTB taken 2017 . Can it go over 6% ? I don't understand how CPI works If you bought your home with the earlier Help to Buy: Equity Loan (2013-2021) scheme, the interest rate increases by adding the Retail Price Index (RPI) plus 1%.

@matthewleonard1402 7 месяцев назад

@@nls1809 1.75% plus RPI+1%. If RPI was 10% then you’d add 11% of 1.75% on which is a grand total of 1.94%.

@solsolange5452 Год назад

Hi Adam, great content. Have been looking for this type of explanation for a long time. Glad I found your videos. Will get in touch with you guys for sure 😊

@mortgageadvice.vantage Год назад

Thank you! I’m so glad you found it helpful!!

@MrHuziman 6 месяцев назад

Which is better option to pay HTB? Remortgaging or cash out to refinancing?

@mortgageadvice.vantage 6 месяцев назад

Hi, thats basically the same thing, we just tend to use the term remortgage to cover all bases. you just borrow more from a new lender than you owe your old one and the balance s yours to keep or repay HTB in this case

@srinikala9333 Год назад

Nice video. Can you please also share information how interest rate works after 5years. I am really worried now because my 5years tenure is finished last year and started paying interest only. Thing I didn't understand is on the Web interest calculation is showing as 1.75 + rpi+ 1% which I don't understand. I borrowed 20% which is 80k when I bought 5 years back (property value £400k). Now property value shows as £490k. I am not in a position to repay but want to know how interest only works. Many thanks in advance. Thank you

@mortgageadvice.vantage Год назад

Hi, yes no problem. In the first year of interest (year 6) you will pay 1.75% so for you thats £116 per month but then the next year the 1.75% goes up a bit inline with inflation so its quite a bit at the moment. The official figure is the "retail price index" plus 1% so if the RPI is 10% lets say, thats an 11% increase. That means 1.75% becomes 1.94% and £129 per month. Then the same next year and the year after! Those are just examples of course as it depends on inflation each year. Always best to repay it ASAP by remortgaging.

@elizeebz 6 месяцев назад

How do you know how much the property value is now?

@mortgageadvice.vantage 6 месяцев назад

We start with an estimate based on similar property sales recently but then your HTB valuation will give us proper figures

@rajarakeshreddyallam6430 Год назад

Is it worth to pay in to isa to max out tax breaks, instead of paying down help to buy? In the long run,equities outperform realestate?

@mortgageadvice.vantage Год назад

Hi, probably not something I can really give advice on but I guess you just need to balance how much return you will get vs how much your HTB loan is increasing and how much the interest rate on it is going up by!