Remortgage with Help to Buy

ccdorset

Hello,

I have a mortgage with Halifax, which I took out under the Help to Buy scheme in October 2017. Property is worth approx £150k and mortgage outstanding is £108k plus the £30k Help to Buy loan.

My 2 year fixed rate is coming to an end (currently 2.16%) and I'm now considering my options. I've decided not to pay the Help to Buy loan off this time, so would either be looking at just switching to a new deal with Halifax or remortgaging elsewhere to a lender that would accept the Help to Buy loan still being in place.

Halifax are offering a 3 year fixed at 2.69% with no fee (no 2 year option available), which would work out £410.85 a month.

I understand Barclays are one of the few lenders that consider Help to Buy remortgages. They are offering a 2 year fixed at 1.97% with no fee, which would be £371.13 per month. They pay standard legal fees and valuation.

The Help to Buy loan would require a deed of postponement, which the agency would charge £115 for. However I would think there would also be additional legal fees involved in doing this, which I'm presuming wouldn't come under the Barclays standard legal fees that they pay.

I'm just wondering if anyone has any experience of remortgaging with a Help to Buy loan and how much extra hassle it is? Also if anyone has any idea of the additional legal costs this would incur?

Not sure if it will be worth all the hassle, but looks like there is a saving to be made.

Thanks in advance for your help. :-)

MortgageMamma

You are comparing a 3 year fixed rate with a two year fixed rate - so the rates are off because of the different product incentive terms.


What term do you actually want as you should not commit to a longer term just because the correct product term isn't available

ccdorset

MortgageMamma wrote: »

You are comparing a 3 year fixed rate with a two year fixed rate - so the rates are off because of the different product incentive terms.


What term do you actually want as you should not commit to a longer term just because the correct product term isn't available

Thanks for your reply. :-)

Ideally I would only want a 2 year fixed. When I checked a few weeks ago, Halifax did have a 2 year fixed for existing customers at 2.69% but looks like they are now only offering 3 or 5 years.

I guess I am just worrying about how much the additional legal fees could be to postpone the second charge and how much hassle it will be vs staying with Halifax, as I understand the Help to Buy agency can be quite challenging to deal with.