Be Cautious!
Just have a think before you take advantage of this interest free loan as it may end up costing more than you think.
When you take out a mortgage, the lender has a charge on your property, which means that they have first shout if your house is reposessed. When you use a LSAP, the RAF take out a legal second charge on the property to make sure that they get paid too. This costs money, the solicitors want their cut!
If you take advantage of a fixed rate mortgage and then subsequently want to change it after 2 or 3 years, you will have to get solicitors to untangle the first and second charges on your mortgage, which won't have to cost much to wipe out any advantage of the LSAP.
You might like to take some 'proper' advice, but when I did it afew years ago it was more hassle than it was worth to have a second charge on my house so I just paid tne LSAP back.
Just as an aside, the LSAP was designed years and years ago to give you a significant step into the housing market to make up for our nomadic lifestyle. Then it was worth having, but as ever, with the massive upsurge in the housing market, it is really not worth the hassle for the paltry sum of money.
Anyone else??