Remortgaging out help to buy equity loan

[user1494157537]

Does anyone have any experience of this?

I have a flat in London which I bought 3ish years ago. My current mortgage term is for another 18months or so but quite a few neighbours have had their flats valued at 30% less than they bought them for.

I get this puts me in negative equity - but it also lessens the equity loan portion.

Does anyone know if there is a calculator to check affordability for this online? Or have any mortgage broker recommendations?

We’re currently remortgaging to get rid of the HTB, I would think a lot depends on what your initial deposit was and how much you’ve paid off your mortgage. We are hoping our house is a similar price (about to be valued) but if it has lost value then it would have an effect on us going for a new mortgage, as we won’t have enough equity against the new mortgage, yet we’re increasing our mortgage to include the HTB amount-if that makes sense?

Thank you - yes that’s what I’m trying to work out! I’ve overpaid a bit and put down a 10% deposit but I wish there was some sort of calculator online!
Good luck with yours!

We were in the same situation in London. Had a massive equity loan £220,000.
Fortunately or unfortunately as with all new build flats that property prices has dipped. We paid back our loan and managed to save 20,000 due to the value having dropped.

There is no specific calculator but you can work it would yourself
if your loan is 40% of 500000= 200000.
and the property price drops to 460000
40% of 4600000= 184000

Glad to have the equity loan behind us. i cant imagine how people who cant pay it back feel at the end of the 5years. Especially in london, paying interest on a 100,000 loan that you cant pay back is ridiculous.