Choosing a mortgage - Help to Buy

drc90

Hi, I have a couple of questions.

1) Are there any potential future issues to be aware of when getting a mortgage on Help to Buy (equity loan)? I've read that it might be difficult to remortgage after the fixed term. Is this true? Once the equity loan has been paid back, will we be in the same boat as everyone else when it comes to remortgaging?

2) The mortgage advisor suggested by our developer has found two potential mortgage lenders for us (only two because we only have one year of accounts). I'm very wary of this because there's obviously an ulterior motive in there somewhere. What are the pitfalls we can fall into? Is it literally just a case of "you might not get the best rate" or are the problems deeper than that?

Thanks

stator

Yes once the equity loan is paid back you will be in the same position as everyone else.

It's always best to get independent mortgage advice, who is the advisor, a national chain? Local independent?

kingstreet

I can think of one definite lender for HTB EL with only one year's accounts and one which may lend depending on the overall case quality and lender credit score.

I'd be trying to establish if the latter has an appetite for the case as it's a high street name with decent retention products. The other is new to HTB equity loan

There is one lender, so far, accepting remortgage business where the equity loan will remain in place.

So, you'll be reliant on them, or the customer retention products of your existing lender.

Broaden your broker discussions if unhappy with options being suggested.

Your circumstances mean you will not get the best rate available to HTB borrowers. For that, wait until you have two years accounts.