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Our property investment expert is Jeni Browne, Sales Director at
Mortgages for Business
www.mortgagesforbusiness.co.uk/
Tel: 0345 345 6788
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Question
Can I use a Lifetime ISA and Help to Buy?
I have just been looking at my options for buying my first home and noticed the Help to Buy scheme is closing soon. I have been saving in a Lifetime ISA and although I am putting away quite a bit each month, I am still no nearer to the 10% deposit.
I am therefore keen to go down the Help to Buy scheme. But can I apply if my savings are in a Lifetime ISA? In other words, is there a limit to how much support I can get?
Answer
My understanding is that you can mix them both together to get maximum support although I have never seen this done first-hand.
However, I have asked several colleagues and run some research and it certainly looks like you can. Please don’t forget the regional price caps which are in place for the purchase.
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Question
Amazing valuation – can I remortgage early?
I am not sure if you can help without seeing my facts and figures first, but I wondered if you could answer a question in principle.
Our five-year mortgage is due to expire next year – around April. We are worried about interest rates going up and wondered whether we could remortgage early? There is a 1% exit fee, however, our property has increased in value by quite an astonishing amount in the last two years.
We remortgaged in 2018 when it was £300k and it’s now £380k. Could we remortgage now before rates go up even further?
Answer
We are seeing so many people doing this right now as interest rate rises are a huge concern for the majority.
It’s great that you’re considering your options; my advice would be to speak to a mortgage broker who will provide you with quotations for your options so you can make an informed decision as to whether paying the 1% ERC is worthwhile.
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Question
How much can I overpay on my mortgage?
I just wondered if you knew whether it’s possible to make an overpayment on one’s mortgage and if so, by how much?
With interest rates rising I am eager to try and reduce my loan as effectively as possible so I have more equity when I come to remortgage (my two-year deal ends next August) so I want put as much extra cash as I can into my house.
Answer
Your mortgage offer will state how much you can overpay, but it will depend on which specific mortgage you have. Most lenders, although not all, will allow an overpayment of 10% of your balance each year.
There are also mortgages where the overpayment is set to a maximum amount each month, and others which are fully flexible, so apologies that I can’t give you a straight answer here. As mentioned above, your mortgage offer will let you know what you can do or give your lender a quick ring, and they will advise.
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