Fix coming to an end plus Help To Buy

hufc2002

Hi all

Posting this on behalf of a family member. 

They bought a property (£142.5k) using HTB (20%) 4 years ago.  Their current mortgage fixed rate ends 31/10/25.

At 31/10/25 they will owe approximately £93.5k and already have product transfer options available within current lender (Barclays) i.e. 5 year fix at 4%.

Obviously HTB is interest free for the first 5 years however is it worth adding this in to the remortgage at this stage? I assume they can’t fix for 5 years now and then add the HTB loan in in a years time. 

House is now worth approximately £180000 so HTB repayment will be £36000.

Any advice would be welcomed. 

Thanks 

Arjmor

When we remortgaged with Natuonwide, they would not allow us to keep the Help to Buy.
we had to buy it out and add to the mortgage.

hufc2002

Arjmor said:

When we remortgaged with Natuonwide, they would not allow us to keep the Help to Buy.
we had to buy it out and add to the mortgage.

Was your HTB loan still interest free at this point or were you beyond the 5 years interest free period?

Looking at the Barclays app it would appear that they can select a new fix now just for the outstanding mortgage.

amnblog

The majority of Lenders will not take on a new borrower as a re-mortgage with a H2B Equity loan in place.

Lenders on mortgages already accompanied with a H2B Loan will offer a new rate to the borrowers (as is the case here).

Whether it is smart to but out the H2B loan has less to do with interest rates and more to do with valuation movements.

If our OP wishes to help the family member, a suggestion to speak to a good independent mortgage broker would be best.