HTB Mortgage Fixed Rate Question

London68164

Hi there,

Apologies if this is the wrong place.

Just a quick question about the Help to Buy mortgage process.
We are buying a new build property, due for completion in the Autumn and currently going through illustrations with a broker.

Apparently they are telling us that as with the new build process we get the mortgage offer sorted now to allow exchange of contracts, around 6 months prior to completion, and when we do indeed start repaying the mortgage that a certain fixed rate offer period that’s been agreed on (2,3,5 etc) will actually be 6 months less than technically advertised? An example is a 2 year quote we were looking at and the fixed rate product ends in March 2022? Other lender’s quotes are also backed up by similar end dates.

Just wanted to check this was the norm as seem to remember others getting the full fixed rate period from when they start paying on completion.

Thanks for the help!

kingstreet

Most fixed products have fixed end dates, (eg 30/03/2023) not x number of months from completion.

Nationwide does the latter but you'd have to reapply as its offers only last six months + 45 days max.

Whats_your_forte

You can use one mortgage offer for the exchange of contracts now and in say 6 months time, prior to completion, you can switch to another deal with the same lender thereby getting the 2/3/5 year option you asked for.

Potentially you can use a different lender but a right pain to change the HTB paperwork at this stage

Celes

So are you saying that whatever the rate is when you FIRST apply is what you stick with?

Also wondering as applied via Natwest and they may have (I think) just reduced their rates a week later. I've not asked my mortgage man yet if they'd apply to me as not had an offer yet or if I'm stuck on the rate as applied. Main thing is I get a mortgage (self employed, so nervous) but obviously the best rate ideally.