Looking to Remortgage your Help to Buy Property in Mansfield? Shaw Financial Services Can Help!
The Help to Buy scheme has been a lifeline for many first-time buyers, providing opportunities to enter the property market. However, as the initial fixed term of the Help to Buy mortgage comes to an end, numerous homeowners seek ways to remortgage their property to settle the equity loan. If you’re in Mansfield and need assistance with a Help to Buy remortgage, Shaw Financial Services is here for you.
Understanding the Remortgaging Process for Help to Buy Equity Loans
Remortgaging to pay off your Help to Buy equity loan can be a relatively straightforward process with the right guidance. By releasing the equity accumulated from your monthly mortgage payments, you can use it to clear the outstanding debt on the equity loan. Typically, after five years, the equity loan becomes subject to interest, starting at 1.75% in the sixth year and increasing annually with the Retail Price Index (RPI) measure of inflation plus 1%.
Benefits of Remortgaging with Shaw Financial Services
At Shaw Financial Services, we understand the importance of exploring your options after the initial five years of Help to Buy ownership. By remortgaging with us, you can:
1. Free Up Capital: Remortgaging allows you to access the capital needed to pay off the equity loan, leaving you with only mortgage repayments to manage.
2. Seize Better Opportunities: Our expert advisors can help you find the best remortgage rates and deals in Mansfield, tailored to your unique financial situation.
Steps to a Successful Help to Buy Remortgage
Here’s a step-by-step guide to starting your Help to Buy remortgage journey:
1. Consult a Broker: Begin by speaking to our experienced mortgage brokers at Shaw Financial Services. We will guide you through the entire process, ensuring no mistakes along the way.
2. Obtain a Valuation: Get a property valuation to determine the outstanding equity loan balance, which is a percentage of your property’s value.
3. Seek Legal Advice: Engage a solicitor or conveyancer to handle the legal aspects of the remortgage.
4. Complete Paperwork: Fill out a Loan Redemption Form provided by the housing association that handles your Help to Buy. An admin fee will be payable at this stage.
5. Receive a Redemption Letter: This letter will provide an estimated repayment figure.
6. Agree to Remortgage Terms: Finalize the terms of your new remortgage and inform your lawyer about your readiness to repay the equity loan.
7. Repay the Loan: Your solicitor will transfer the owed amount, and your equity loan will be cleared.
Types of Remortgage Options Available
With Shaw Financial Services, you have three main options for remortgaging your Help to Buy property:
1. Remortgage to a Higher LTV: Opt for a mortgage with a higher Loan-to-Value (LTV) ratio to repay the equity loan, ensuring you benefit from any future increase in your property’s value.
2. Pay off the Loan from Savings: If possible, use your savings to clear the equity loan before remortgaging at a lower LTV, enabling access to better interest rates and deals.
3. Utilize Property Equity: If your property has appreciated in value, you can leverage the built-up equity to pay off the loan and potentially remortgage at the same LTV.
Eligibility Requirements for Help to Buy Remortgage
Before proceeding with a Help to Buy remortgage, ensure you meet the eligibility criteria:
1. Sufficient Equity: You must have enough equity in your property to cover the deposit requirements and settle the outstanding equity loan balance.
2. Up-to-Date Payments: Stay current with your equity loan payments and settle any outstanding dues before remortgaging.
3. Employment Type: Mortgage lenders now cater better to self-employed individuals, but factors such as profitability and income structure may influence the loan amount available to you.
Other Factors Affecting Eligibility
Your credit history, age, and income level will also impact your eligibility for a Help to Buy remortgage. Having a good credit score, meeting the lender’s age requirements, and meeting the minimum income criteria will boost your chances of approval.
Additional Considerations
When planning a Help to Buy remortgage, budget for expenses like the updated valuation and the £200 fee payable to the government for clearing the equity loan. These small expenses are crucial to remember during the remortgaging process.
Choose Shaw Financial Services for Your Help to Buy Remortgage in Mansfield
If you’re ready to explore remortgage options for your Help to Buy property in Mansfield, rely on Shaw Financial Services to provide expert guidance and find the best rates for your unique circumstances. Contact us today to start your Help to Buy remortgage journey and secure your financial future.
