Mortgage Calculator with HomeBuy scheme

Ammah45

Hi,

My mortgage renewal is due in November and the financial adviser company doing the search for me has found the best deal to be with my current provider (NatWest) at 5%. This is a 3.2% hike.
She says that because I have a 20% HomeBuy scheme when I bought the house, there are no lenders who will give a better rate. Is it true that the HomeBuy debt increases the mortgage rate? I could pay it off and add it to the mortgage, but it will significantly increase my monthly payments. The HomeBuy payback percentage is very low.

I have looked for mortgage calculators online but none of them allow for the HomeBuy percentage to be entered into the calculations. Comparison sites don't take this into account either. Does anyone know of any out there? Or do I have to approach individual lenders one by one myself?

amnblog

The Homebuy Scheme is fairly historical and Lenders do not like picking up properties on these kinds of schemes on re-mortgage.

A 5% is hardly out of line with today's wider market and you are not going to match anything like your previous 1.8% rate.

BarelySentientAI

Ammah45 said:

My mortgage renewal is due in November and the financial adviser company doing the search for me has found the best deal to be with my current provider (NatWest) at 5%. This is a 3.2% hike.

That sounds like a pretty normal rate at the moment.  What your old rate was makes no difference and has no relevance whatsoever to what rates are on offer now, so it isn't really a 'hike' of any sort.

Ammah45

Thanks. I know I won't get anything near 1.75% that I got 5 years ago but surely there are many other people on HomeBuy. So I was wondering why the online calculators don't take this into account. This means that for those of us with HomeBuy, the online calculators are pretty much useless. 

kingstreet

The issue relates to the second charge. If you want to keep your shared equity (be it HBD, FB or HTB) most lenders won't accept a remortgage, so a rate switch with existing lender is usually easier.

Of the handful who will, a deed of postponement will be required to prevent the second charge being promoted to a first and typically 3% of the equity loan will be treated as a cost and will reduce mortgage borrowing power accordingly.

chanz4

im 23% ltv, halifax showing me 4.5% and im on normal mortgage so 5% aint much