Helping clients out of help-to-buy loan early, to purchase new larger property

Helping clients out of help-to-buy loan early, to purchase new larger property

Article by Peter Dickson Mortgage Adviser

What was the situation?

The clients contacted me looking to purchase a new property, having purchased their current property using a Help-to-Buy equity loan. Their existing help-to-buy equity loan had one more year before incurring interest on it, and the clients were keen to move before this timeframe.

The clients wanted to port their outstanding mortgage balance, whilst trying to raise additional borrowing to upsize.

They requested my help to find a solution which could help them purchase their new property by raising an additional £130,000.

What was the issue?

The clients wanted to repay their Help-to-Buy loan through the sale of their property and avoid paying expensive penalties to the lender. I proceeded with a porting application, moving their existing product to the new property and topping up their borrowing on a new product with the same lender.

The clients offer was accepted on a property but, frustratingly, they were then gazumped by a cash buyer. Regardless of this setback, I was still able to go ahead and secure a new rate for their additional borrowing, which meant they could focus on finding their next property confident on their expected payment level.

What was the process?

Once the clients had found a new property and were ready to proceed with the sale, I helped the clients source a RICS qualified surveyor to ensure the correct documentation was in place for redemption of the existing Help-to-Buy loan.

To make sure the application progressed efficiently, I escalated the case through underwriting to obtain their mortgage offer within the vendor’s preferred timescale.

What was the solution?

We were able to keep the initial rate secured despite the Bank of England base rate increasing three times after the clients were gazumped.  They were able to redeem the Help to Buy equity loan avoiding interest being charged, whilst moving their original product to their new property which isn’t a common practise for lenders, meaning no redemption penalties were incurred.

The case went to offer in three weeks, enabling them to secure their property having previously been beaten by two cash buyers in a turbulent market. I secured a competitive rate of under 5% given the current climate, even though their initial property chain had collapsed. The clients were thrilled with the outcome.


At LDN Finance we’re here to help you find a solution – no matter how complex your circumstances. Our expert brokers have extensive experience in providing creative solutions to secure large loans for our clients.

We work closely with our trusted network of private banks and both high street and specialist lenders to arrange bespoke mortgage arrangements to suit your circumstances at competitive, market-leading rates.

Get in touch with us to organise an initial consultation.

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Our happy clients

Excellent and outstanding professional service from start to finish. From offering as many options as possible, to explaining to me very quickly what the benefits are and what I should really be thinking about moving forward. Thoroughly recommend.

Mr. M

July 2021

5 Stars! The LDN team supported us purchasing our family home, without their support and as an expat it would have been very difficult to obtain our new home in the UK. I would totally recommended them.

Mr. S

August 2021

Johnny Martin held our hands through the entire process calmly and professionally. Brilliant service, efficient and swift in response to everything. He made the entire journey uncomplicated even when the bank made it complicated. Highly recommended.

Mr. H

July 2021

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