Extra capital raised on re-mortgage to help buy your first house to let!

Re-mortgage can be an opportunity to review your strategy and to see what can be done to start building your investment property portfolio .

Our success story this week is of clients who bought their first home with very little deposit 2 years ago and, on re-mortgage, we have now managed to get a deal that will let them borrow extra £30k to invest in their first property to let! This is a great outcome after only 2 years when they first bought a residential house.

Property values have increased over the last year and, despite all Covid related distractions, the market is very busy. It may be a good thing if you want to borrow extra capital on your home.

Every time your property grows in value, you gain more and more equity (ownership) which can mean benefits like:

• an option to borrow more,

• option to renegotiate your interest, or

• option to reduce the term of the mortgage.

Remember, every case is different and it has to be assessed on its own merit but when you are planning your re-mortgage, you should not just assume that switching product with the same lender is the only option available for you. Have a chat with a mortgage adviser to discuss what can be done.

Help to Buy repayment - All you need to know!

If you had bought your house with the Help to Buy Loan and you would like to borrow extra on Re-mortgage to be able to clear that loan, it may be possible but you need to bear in mind that there are a couple of requirements you need to meet:

• You will need your house valued by a RICS Certified Surveyor – this valuation is only valid for 3 months so plan the process in advance. You need to pay for this survey.

• You could repay your equity loan in full or in part

• You will need to complete a redemption form and send it to Target together with an administration fee of ca. £200- £250

• You will receive a redemption quote based on the amount of loan you wish to settle (full – 20% of property value, or partial – 10% of property value)

• You will need to appoint a solicitor to deal with the Help to Buy loan repayment process, so bear in mind the extra cost for legal fees and solicitor fees as well.

• You will need to check whether you can actually afford to borrow more so before you do anything at all, contact a mortgage broker to check your affordability and credit worthiness.

There are other ways to settle the Help to Buy loan so if you need more information, check it here: https://www.gov.uk/.../how-to-repay-your-equity-loan...

First Homes Scheme - discounts for First Time Buyers!!!

Have you heard of First Homes Scheme launched on 4th June?

From 4th June, new Government scheme has been introduced offering local First Time Buyers a discount of at least 30% of the market value!

The programme aims to support first time buyers, especially key workers like NHS staff or Veterans so there is a benefit to the local community for generations to come.

When the house bought under the First Home Scheme will be sold in future to another first time buyer, the same percentage of discount will be passed on to them.

These homes will be made available across the country with the first ones launched as a pilot in East Midlands.

It is fabulous news especially given the constantly increasing house prices!

Further information can be found here: https://www.gov.uk/.../discounted-homes-for-key-workers...