10 top tips for those who have a Forces Help to Buy loan and want to remortgage or buy another home
- If you wish to re-mortgage your property and increase the amount of mortgage you have on the property (in order to free up some cash) Defence Business Services, Military Personnel, FHTB Section (DBS Mil Pers, FHTB Section) will need to do some calculations which will analyse the total amount of equity in your property.
- Once you are ready to re-mortgage you will need to send DBS Mil Pers, FHTB Section a copy of the valuation of the property which has been completed by the new mortgage company or confirmation from your current mortgage company that they are willing to lend the additional money, along with a copy of the new mortgage offer. If you are struggling with this, your Unit HR Administrator should be able to assist you.
- If you wish to borrow more money from the mortgage company and you are left with no equity in the property you would have to repay all the FHTB before you complete the re-mortgage.
- When contemplating re-mortgaging a property, or purchasing a new one, it may seem like a good idea, but once you start considering your finances you may realise that it is not economically sensible or practical. You should always start by speaking with your mortgage broker who will look at what solutions there are for you and whether re-mortgaging is the best resolution. Call Forces Family Finance on 0330 3322 614 or email customerservices@forcesfamilyfinance.co.uk.
- Once you are sure of your financial position, is it then wise to contact a solicitor who will be able to give you an estimate of costs, timings and advise you on anything which they consider may affect your decision. Once you have done all of the ground work it is then time to start looking at new mortgages or new properties.
- Make sure your check about any early repayment charges on your current mortgage.
- Remember purchasing a second property will attract a higher rate of SDLT (Stamp Duty land registry)
- Make sure you leave enough time for the legal process if you are doing this to free up extra cash.
- Everyone on the title to the property needs to be involved with the re-mortgage and/or transfer (i.e. even if you have an interest in your mother, brother or sister’s property you will need to be party to the legal and financial process. This will mean you will need to provide ID and sign documents. you should consider this carefully if you are on tour or posted abroad).
- It is important to realise that your legal advisor works for the mortgage company as well as you and therefore have obligations to the mortgage company. This may involve asking you questions about your current property which you think are irrelevant.
YOUR HOME MAY BE AT RISK IF YOU DO NOT KEEP UP REPAYMENTS ON IT
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