Can you remortgage to pay off your Help to Buy equity loan in full?
Remortgaging would allow you to add the government loan to your mortgage value and use your new mortgage to repay the full amount. This option removes the need to pay back the 20% equity loan when you come to sell. This means that when you do decide to sell, you get 100% of any increase in your home’s value. In fact, many lenders require borrowers to pay off their equity loan as part of the remortgage process.
You can only do this if your property has gone up in value, as remortgaging would allow you to access and release the equity you’ve already built up to pay back the loan. Even if your home hasn’t increased in value, you could still remortgage to pay off your equity loan, however the loan-to-value (LTV) amount will be higher than your previous Help to Buy mortgage.
As always, you will need consider if you can afford the higher monthly repayments that this could bring, and we always recommend that you to talk to a mortgage adviser.