Great news! Launch of Help to Buy remortgaging up to 90% LTV
From Monday 29 October 2018, we’ll accept remortgage applications to redeem a Help to Buy: equity loan in full from the Help to Buy schemes in England, Scotland and Wales. These will be available on our remortgage deals up to 90% LTV.
This is great news for your clients who are already paying interest on their equity loan or who want to come out of the scheme early so they can benefit fully from any increase in their property value.
Before completing a remortgage application
Your client will need to:
- Get a redemption quote from their current lender
- Contact the scheme administrator to inform them of their plans
- Pay for and send a RICS valuation (or get a valuation from a District Valuer if they’re in Scotland) to the scheme administrator
- Have a redemption quote back from the scheme administrator which shows how much they need to repay on their equity loan.
We don’t need you to upload these documents to MATS.
In AIP > Loan Purpose, you need to select 'Remortgage and redeem Help to Buy: equity loan in full' and enter the amount your client needs to borrow to pay off their equity loan in AIP > Loan breakdown.
- Where the LTV is over 85% the money can only be used to redeem the first mortgage and the equity loan.
- We won't accept remortgage applications where the equity loan will still exist (i.e. we won't allow partial staircasing).
- If you select a remortgage deal with standard legal fees paid, please make sure when the conveyancer has been appointed, your client passes on their details to the scheme administrator straight away. They can do this when they complete the ‘Loan redemption form’ (or the ‘Post sale instruction form’ in Wales or ‘Equity increase form’ in Scotland), which they send to the scheme administrator with an administration fee.
Where your client is choosing their own conveyancer, please make sure they're on our panel.
Further help and support
The Help to Buy websites provide some very helpful information on the process for each of the different schemes.
- www.myfirsthome.org.uk (England)
- www.beta.gov.wales/help-buy-wales (Wales)
- www.mygov.scot/help-to-buy (Scotland)
Our website, affordability calculator and lending criteria have been updated to reflect these changes.Back