If you are repaying your Help to Buy loan you will need to deal with Target who are administrators on behalf of the HCA (Housing and Communities Agency).
Target will administer the repayment of your Help to Buy loan and will also administer the interest payments which become effective after the five years of your interest free term. Indeed approximately six months prior to the term finishing it is our general experience that Target will contact you to set up a direct debit for the interest payment.
We have been advising clients on the process for the past four years, carrying out over 8,000 RICS Help to Buy valuations on a national basis.
If you follow our advice, collated from these numerous RICS Help to Buy valuations we have carried out – and the advice offered to our clients, then is very rare that Target will delay the process. This is because you need to provide Target with the correct information and documentation at the time of the redemption. This will include providing them with a customer account number and the respective administration fee which they require to process your redemption. You will need to provide Target with the relevant Loan Redemption Form. This form replaces the original Form A or B depending upon whether you had sold your property or are just repaying through re-mortgage or other means. We will attach this form with our valuation with an instruction as to how to proceed with Target. This will require you to have a copy of the Customer Information Pack.
In the majority of cases which require ‘desk top’ valuations – i.e., the original 3 month valuation timescale has expired, then it is usually a lack of understanding from solicitors or indeed lenders and mortgage advisers which lead to the delay. With the advice that we provide at the time of our RICS Help to Buy valuation, then we usually find that our clients have their redemption statements within a matter of hours as opposed to days, indeed the quickest we have had has been four minutes from submission to the redemption letter being generated.
It is important to note that the redemption statement will be issued to your solicitor but will be copied directly to yourselves.
If you require any further advice or indeed require the RICS Help to Buy valuation then please contact us accordingly.