Help to buy regrets - am I fucked?

[mortgagefears]

We bought our house for £245k 3 years again using a mortgage of £185k, a help to buy equity loan of £49k and a deposit of £11k. The value of the property has now risen to £335k, interest rates are obviously rising at insane rates and with a combined salary of £68k maximum affordability of £204k - are we fucked? How do we pay off help to buy now the value and subsequently how much we owe them has risen so much?

If we pay the interest on the help to buy until I can go back full time our affordability would then be £237k

Just pay the interest on the help to buy part which kicks in after 5 years. You’d be mad to remortgage to pay that off with rates so high. The payments on the help to buy part won’t be that much, ours was about £100 a month on about twice your help to buy amount. We moved to a bigger house and used help to buy again 3 years ago so we also have another 2 years before we’ll start to pay any interest.

We also have this situation- we borrowed £40 something thousand and now probably that 20% is more like £70K which we will never repay in the 13 years we have left on the mortgage. Not really sure what will happen once the mortgage is paid and we haven’t paid help to buy off!!

I'm getting so confused, sat down with my husband tonight to work it out and he's saying if the value has gone up to £340k, and we sold we'd pay back £68k to help to buy, and the mortgage off we'd have just over £100k left to use as a big deposit towards our next house and that I'm panicking over nothing? I feel like he's definitely missing something and we can't of ended up that well off

If your mortgage is about £172k when you come to sell (presuming you get the amount quoted) that sounds about right. But £100k added on to max loan amount of £204k means max house price you can afford is £304k, which would be less than you sell for. Unless I am missing something

Oh yes. I keep thinking it sounds like more as it's more than we paid but like our house has gone up so has everything bloody else hasn't it! Just have to hope we can afford to remortgage, then.

While it may be a bit tricky, your house has increased in value by 90k in just 3 years. You are so incredibly lucky. I bought my flat just over 3 years ago for 210k the best I am likely to get for it is 215k.

Our H2B 5 year interest free period ends in Feb 2023, we have decided not to borrow more to pay it off as it doesn't make sense with the interest rates. We have secured a 3 year fix at 3.29% and will pay off the interest and reassess in 3 years time. No need to stress.