H2B Repayment and additional burrowing

[dogmama1]

Hello,

Wondering if anyone can advise, we brought our home 6 years ago on the government h2b scheme, we this year have started repaying interest only, nothing astronomical approx £50pm.
Our mortgage is up for renewal next October and we'd like to pay off the help to buy.
We have a approx estimated currently value on our home of £274,000. Our remaining mortgage is £139,000 and the h2b repayment in full will be approx £54,000.
I believe we will still have about £81,000 equity in our home after doing so, although my math maybe off - I've worked that out using info I've found on google.

We have debts of approx £18,000, some credit cards and loans. (Regretful i may add, some stupid decisions when younger) we are hoping to start a family in the next year, and are hoping to be able to add this debt to our mortgage to reduce our monthly outgoings. Is anyone able to advise weather that seems like it'd be doable? We understand it isn't ideal to add debt onto a mortgage and in the long run we pay more, but in the present tense it makes life a-lot more comfortable and less of a struggle when dropping down to one full income. We were paying additional off the debt monthly however with the cost of living constantly rising it's now a pinch to be able to do so...

Our LTV on our mortgage is currently 51%, if that helps advise wise. Any financial gurus able to offer insight? Would this be something we'd need to try and do at the same time when remortgaging, so ask to burrow £72,000 (H2B loan and debt repayment) or pay off the help to buy, remortgage and then a month later call to request additional burrowing?

Also should add, we are both early 30's, brought our home aged 24/25. Our mortgage term is now 29 years, we'd also look to re-extend to 35 years.

Thank you in advance.

It will depend on your income as well as affordability calculations. Lenders will only allow you to borrow a fixed multiple (usually 4.5x income, but some lenders will go up to 6x for people in certain occupations) and if the additional borrowing for H2B plus consolidated debt takes you above that it won’t be approved. Likewise if you have high outgoings.

Speak to a mortgage broker about your options. I’d also be considering whether dropping to one income is actually feasible or desirable when you have so much debt.

It might be worth holding on to the HTB a little longer, with mortgage rates as they are and house prices not going anywhere fast (obviously both predictions and not guarantees) it might not make sense to pay off HTB now, our 5 years are up soon and we are considering holding off even though we can afford to clear.

You might find this useful: www.themoneycalculator.com/mortgages/calculators/help-to-buy-repayment-calculator/#!/dealfinder/mortgages/

Our combined income isn't bad, and using the basic 4.5 calculation, we'd have eligibility of approx £230,000. So we'll within even with paying off the H2B. The reason for adding the debt it to make things more affordable when we do eventually drop down to one income (or rather maternity). But thank you.

Thank you for replying. If I'm honest, we more want the H2B gone because of all the restrictions it's puts upon us. We rang our mortgage provider last year to add the debt onto our mortgage, they were absolutely fine with it, said it'd be no issue, until .... they found the clause from H2B forbidding any burrowing unless it is to pay them off.
We've also made a pretty good profit on our home, and will already be paying them back over £10,000 more than burrowed not including all the interest they're racking in. I just want it gone.... (and even that they don't make easy)

Mortgage rates are rising, but currently we pay out £600 in debt every month. So, an additional £250 (approx) on the mortgage each month would seem a breeze.