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Is this right ? Overpayment/Homebuy ?

Hi there , me and my wife have taken the homebuy option and as I understand it we have 5 years to pay back what we owe the housing company what we owe them if we choose (£42,000) , now we have 4 years left of their interest free so would it be better overpaying on our mortgage (£120,000) and then in 3/4 years getting a mortgage for the full amount ?
Are there any better options , I do not want to really lose the option of interest free of £42,000 for 4 years unless there is a better way of making our money work for us .

Many Thanks


  • dimbo61dimbo61 Forumite
    13.3K Posts
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Sounds like a plan as you are paying interest on the mortgage but you have not given the rate!
    now the thing that concerns me is do you have to repay the whole £42000 in 4 years and what happens if you cant afford too!
    Have much equity do you have in the property and can you save the £42K in say cash ISA,s over the next 4 years! Good Luck
  • iwearahaloiwearahalo Forumite
    41 Posts
    Tenth Anniversary 10 Posts Combo Breaker
    You dont have to pay it back at all , rather after 5 years you pay £1000 approx "service charge" so would rather either remortgage after this time of have it cleared .
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