Our 5 year fix and 5 year interest free period for help to buy is up this year, the plan was to remortgage to borrow the extra to pay it off. Between the added loan, interest rate increase and drop in LTV it obviously means a big jump.
I've been advised we could instead refix staying with our current lender on the 60% LTV rate we are being offered, and then do a second charge to pay off the HTB. This would obviously mean the second charge will be at a higher rate due to the new LTV figure when the 20% addition is considered, but it means we don't have the pain of trying to line up a remortgage and the HTB admin which could see us going on to the standard variable rate, and also means we benefit from a cheaper LTV rate for the majority of the loan.
My broker has confirmed this with the bank's business manager she works with, but it just all seems a little too good to be true. Has anyone else heard of this being done this way?