| Loan amount | £375,000 |
| Property value | £495,000 |
| Loan-to-value | 76% |
| Help to Buy cleared | £85,000 equity loan |
| Location | Slough (SL3) |
| Term | 25 years |
| Rate | 5-year fixed |
| Lender type | High street remortgage |
The Story
At Fox Davidson, we pride ourselves on being a knowledgeable mortgage broker. One of our areas of expertise is repaying help to buy loans via a remortgage. Recently, we had the privilege of assisting a homeowner in London who was looking to remortgage in order to repay a help-to-buy loan.
In this case study, we’ll delve into the details of how Fox Davidson navigated the complexities of remortgaging to repay a Help to Buy loan, providing our client with a specialist and efficient mortgage solution.
Our client, a homeowner who had initially taken advantage of the Help to Buy scheme was coming to the end of their 5 years interest-free period of the loan. They approached Fox Davidson intending to remortgage their main residence. The objective was to repay the outstanding Help to Buy equity loan and secure a more favourable mortgage offer aligned with their long-term goals.
The Challenge
The primary challenge for our client was twofold – securing a remortgage on favourable terms and raising sufficient funds to repay the Help to Buy equity loan. Understanding the can and can-nots of government-backed schemes can be complex, and our client sought expert guidance to ensure a smooth and successful transition.
Fox Davidson’s Specialist Solution:
Understanding the unique challenges presented by the Help to Buy equity loan, Fox Davidson’s team of experts initiated a full analysis of our client’s financial situation. We designed a specialist solution that involved a strategic remortgage to both repay the Help to Buy loan and secure a more advantageous mortgage arrangement.
Key Steps Taken:
Financial Assessment:
Fox Davidson conducted a detailed financial assessment, considering the client’s current mortgage terms, affordability, the outstanding Help to Buy equity loan, and their overall financial goals.
Remortgage Strategy:
Our team devised a remortgage strategy that provided sufficient funds to repay the Help to Buy loan.
Liaison with Lenders:
Leveraging our extensive network of lenders, Fox Davidson initiated discussions with potential lenders who specialise in remortgages involving government equity loans. This ensured that our client had access to lenders willing to accommodate their unique financial requirements.
Communication:
Throughout the process, we kept our client informed and educated on the process of remortgaging to repay a Help to Buy loan.
Frequently Asked Questions (FAQs) – Remortgaging to Repay Help to Buy Loan:
Can I remortgage to repay a Help to Buy equity loan?
Yes, remortgaging to repay a Help to Buy equity loan is a common and viable strategy. Fox Davidson specialises in facilitating such transactions, providing specialist solutions to meet individual needs.
Are there specific lenders that offer remortgages for Help to Buy equity loans?
Fox Davidson works with a network of lenders, including those experienced in remortgages involving government equity loans, ensuring clients have access to suitable financial solutions.
How does the Help to Buy equity loan affect the remortgage process?
The Help to Buy equity loan adds a layer of complexity to the remortgage process. Fox Davidson’s expertise ensures a smooth transition, handling all aspects associated with repaying the government-backed scheme.
How long does the remortgage process take when repaying a Help to Buy loan?
The timeline for remortgaging to repay a Help to Buy loan typically takes around 6 to 8 weeks from application to draw down of the mortgage.
The Solution
Conclusion:
Fox Davidson’s success in securing a remortgage to repay a Help to Buy equity loan underscores our commitment to delivering specialist mortgage solutions. If you are a homeowner looking to repay a Help to Buy loan please do get in touch with one of our brokers.
Frequently asked questions
What is a high net worth mortgage?
A high net worth (HNW) mortgage is assessed under the FCA’s high net worth rules rather than the standard affordability test. It is available to borrowers with net assets over £3 million or annual net income over £300,000. Lenders read the net assets test literally and include the equity in your main home, and on a joint application only one of you needs to meet it.
How does HNW mortgage assessment differ from a standard mortgage?
HNW assessment is whole-of-wealth based rather than income-multiple based. Lenders consider total assets, liabilities, liquidity, income, and lifestyle costs, then negotiate loan size based on the overall financial picture.
What loan sizes are available with HNW mortgages?
HNW mortgages typically start at £1 million minimum and have no upper cap. Loans of £5 million to £20 million are routine for qualifying clients. Loans above £20 million typically involve syndicated lending or relationship-driven arrangements with private banks.
How long does an HNW mortgage take to complete?
HNW mortgages typically complete in four to ten weeks. Mainstream HNW lenders are at the faster end. Private bank cases involving committee approval, complex structuring, or offshore elements can take eight to twelve weeks.
Completed transaction. This case study describes a live deal arranged by Fox Davidson. Client details are anonymised and figures rounded.
All rates and terms are indicative and subject to individual assessment, lender criteria and property valuation. Your home may be repossessed if you do not keep up repayments on a mortgage.
Help to Buy equity loan repayment and remortgaging. Fox Davidson handle the full transition.