Interest payments on the help to buy Government loan begin in year six at a rate of 1.75% and will increase annually.
It is likely that when you took out the mortgage for your home you selected a 5 year fixed rate product. At the end of the 5 year period that mortgage product is due for renewal you will need to re-mortgage. This means switching to a new fixed rate mortgage product either with your existing lender or a new lender.
You may want to include the amount from your equity loan within your new fixed rate mortgage product when you re-mortgage.
Ask About Mortgages is able to offer you advice and guidance with your remortgage. This includes advice on increasing the size of your mortgage to include the equity loan so that you can pay back the Government.
As whole of market mortgage advisers we are able to search across the whole of the mortgage market to find the right mortgage product and lender for your specific criteria. We have over 90 different lenders who we can compare remortgage products and interest rates for.
We offer a fee free service and are able to work with you where ever you are across the UK via online meetings. More…