Planning to buy with an HPP — does this strategy make sense? Would love a sanity check
Assalamu Alaikum. First time posting. My wife and I are getting serious about buying in the UK and wanted to run our plan past people who actually know this stuff.
Our situation
- Joint income: £90k gross
- Deposit saved: £100k
- Target property: ~£450k
- Finance needed: ~£350k
both permanently employed
The plan
Go with a 30-year HPP (looking at Offa mainly, they quoted 5.88% fixed for 5 years, £2,071/month on £350k at 80% FTV). The longer term keeps monthly payments manageable. We also have some investments we're planning to liquidate in roughly 5 years, and the idea is to use that as a lump sum AAP at the refinance point to buy down the bank's share significantly and reduce monthly payments going forward.
StrideUp quoted 6.04% with a £1,249 product fee. Offa came in at 5.88% with a £499 fee — roughly £2,900 better off over the fixed period on like-for-like numbers. Haven't got a Gatehouse quote yet but planning to.
Questions I have
Does the 30yr term + AAP strategy actually work out better than just taking a shorter term and paying more monthly? Anyone done this?
Has anyone used Offa? They seem newer, any experience with their process or any red flags?
Is there anything about this plan that looks off to people with more experience?
Any other providers worth looking at that we might be missing?
Just sense checking with people who've been through it. JazakAllah khair in advance.