Mortgage deal switch whilst still in H2B interest free period

GBR78

With the state of the world just at the moment this is such a minor thing, but With so many people being furloughed, companies being closed, and everything taking longer, I wanted to start the ball rolling on our mortgage deal which is due to end in August.

Almost two years ago we bought a new build property and took advantage of the 20% equity loan with a view to incorporating this into the mortgage after the 5 years is up.  We went into a two year fixed deal with Nationwide.  In looking at rates recently, they still seem quite favourable and we would be more than happy to continue with them for another 3 year deal to bring us up to the 5 year point.

Now, there’s a couple of things I’ve read that say Nationwide are not a lender that will remortgage with H2B in place.  There is also the matter of the £115 charge to Target for the 2nd charge fees.  Everywhere I have looked appears that this £115 is required when moving to a new lender, but nothing about switching deal with the same lender.  With the first point about Nationwide, their online deal switcher allows me to progress through the application, so it appears that I can still switch with them even with the H2B in place.

what have people done mid-way through their 0% period??

PaulC5

Switching with the same lender has no implications to H2B. Ive done it twice on two separate houses and H2B loans.
We are coming to the end of our 2nd 2 year fix (1st August) and were hoping to pay off the H2B loan by adding it to our mortgage but with whats going on right now I'm not sure how you can get a true valuations to work out how much we need to pay back. I'm hoping it will crash back down to something similar to what we paid therefore not having to pay back more than we borrowed originally of the government but who knows as its a frozen market at the minute with nothing to compare it to.

GBR78

PaulC5 said:

Switching with the same lender has no implications to H2B. Ive done it twice on two separate houses and H2B loans.
We are coming to the end of our 2nd 2 year fix (1st August) and were hoping to pay off the H2B loan by adding it to our mortgage but with whats going on right now I'm not sure how you can get a true valuations to work out how much we need to pay back. I'm hoping it will crash back down to something similar to what we paid therefore not having to pay back more than we borrowed originally of the government but who knows as its a frozen market at the minute with nothing to compare it to.

Thanks Paul.  So in those cases, you just carried on sorting with the lender and didn't get a solicitor or H2B agent involved at all?

PaulC5

Yes our first mortgage was with NatWest and our second is currently with Halifax. Both times I was able to login online and pick which rate we wanted 3 months before our current fix ended but be mindful if you are close to dropping into a new LTV band or if a broker can access a lower rate (be it with a higher lender fee) but depending on how big your mortgage is can make a big difference and worth paying the higher fee to save in the long run.

kingstreet

It's not a remortgage it's a rate switch/product transfer and you don't inform Target as there is no change to the mortgage deed.