Remortgage and Redemption of a Help to Buy Loan

J Finance Remortgage and Redemption of a Help to Buy Loan April 2018


Life is busy for Mr and Mrs C in Bath as they both work full time and have two children aged 5 and 11 as well as a family dog. In November 2017 they approached J Finance looking for a way to remortgage their home and borrow enough money to pay off an existing Help to Buy loan from the purchase of the house five years ago. They were also keen to consolidate some credit cards they had accumulated over the years.

The Challenge

The couple’s current mortgage provider, Halifax, were unable to lend them enough to remortgage. Having spent three hours in a meeting with the bank only to receive the bad news, the couple came away disappointed and facing a lack of direction.

They were not prepared to waste any more time going through a similar process with different banks, only to get the same answer. With a young family they were also restricted by various commitments, so any future meetings would ideally need to fit around work hours and the school run.

The Solution

With all of this in mind, the couple decided a broker would be the best way forward. They contacted J Finance and were put in the capable hands of Mortgage & Protection Specialist, Rowan Frayling. Within two days of initial contact, Rowan had conducted their first appointment over the phone. They ran through all the personal information he required and the whole process took no more than 20 minutes. Anything else Rowan needed could simply be sent to him via email at the couple’s convenience.

Rowan said: “Having looked at my clients’ finances, I took time to understand the way they are paid, how much they would need to repay the Help to Buy loan and credit cards, as well as how they go about repaying the Help to Buy loan, as they weren’t aware of the process or costs.”

It turned out that Halifax were unable to lend because of the percentage of additional income they accept on an application. Different lenders view bonuses, shift allowances and overtime, for instance, differently, perhaps using 50%, 60% or 100% of the income.

Rowan was able to pair the couple with a lender who not only had market leading rates but would also accept a higher percentage of their additional income, hence solving their dilemma. And the service didn’t stop there; he also talked them through the process of redeeming an equity loan and put them in touch with a local surveyor who valued their house, as required by the Help to Buy team.

The Result

Before approaching J Finance, the couple were paying £708 a month to Halifax, plus other monthly costs to service some credit card debt and the Help to Buy equity loan. They now pay £850 a month for everything combined and have been able to repay the equity loan that they bought the house with.

Mr and Mrs C said: “We selected J Finance because they don’t just represent one lender… we knew we could basically go through our finances once, leave Rowan to look at our details and be confident that he’d come back with the best way forward for us! It seemed like a much quicker and more sensible way of doing things.”

Such clear savings and swift turnaround time illustrate the positive impact that the services provided by J Finance have had on these clients, as well as many others looking to buy their first property, a buy to let opportunity or remortgage their existing home.

Established in Berkshire in 2004, J Finance Ltd is one of the leading financial planning companies in the area. We serve clients across the South of England including Oxfordshire, Buckinghamshire and Hampshire. If you would like to discuss this subject or any other financial matter, without obligation, please contact us on 01635 521 300 or