5yr fix on a Help-to-Buy Mortg

akaazz2 · 19 July 2019 at 3:22PM

Hi

My broker recommended to avoid a 5yr fix given that's when HTB payments will commence, so many banks wouldn't remortg

I was wondering if this is valid, or just brokers trying to as typically, to make u sign up to a shorter 2yr so they get commission sooner on remortg?

Seems like they always have a reason to detract customers from 5yr deals (as they did to my parents not with HTB)

I just want 5yr for long-term security of a constant payment
But also see how the HTB payments could become an issue

Thoughts?

sal_III · 19 July 2019 at 3:39PM

Sounds fishy. What are your plans for repaying the HTB EL? Most people plan to remortgage after 5 years and repay that way, in which case 5 years fix is a non-issue.

jstallan · 21 July 2019 at 5:21PM

Part of the affordability process when obtaining the H2B mortgage takes into consideration the H2B payments.

Sounds like your broker looking to get repeat business in 2 years time

dimbo61 · 21 July 2019 at 10:08PM

With the difference between 2 and 5 year fixed rate deals only 0.15% at the moment I can well understand your wish to have a long term fix.
Tell your broker what you want.
If you can and have No other expensive debts then overpay every month.
This will put you in a much better position to remortgage at the end of the fix and take a bigger mortgage to repay the HTB.

5yr fix on a Help-to-Buy Mortg

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