fixed rate or tracker in this climate

getmore4less

makkan00 wrote: »

Ok.

Another thing I would like to ask if somebody can answer.

Overpaying mortgages VS 30% equity of developer and government


Which one should I pay / overpay first to save some money on APR?

On 30% share of the property, they will charge me 5% APR after 5 years of purchasing this property (3 years from todays date), 5.23% on 6th year and 5.30% on the 7th year.

This 30 % share is approx 36K.

So considering early repayment of mortgages vs repayment of 30% share... which one should be my periority to pay early?

Currently that is going to be higher than the motgage rate so needs to be planned for.

If you can draw down overpayments, overpay the mortgage for 3 years then get them back and overpay the loans(if mortgage rates have not gone higher).

How much spare cahs o save/over pay will you have over the 3 years?

makkan00

getmore4less wrote: »

Currently that is going to be higher than the motgage rate so needs to be planned for.

If you can draw down overpayments, overpay the mortgage for 3 years then get them back and overpay the loans(if mortgage rates have not gone higher).

How much spare cahs o save/over pay will you have over the 3 years?

Thanks.

I guess I will pay the mortgages as scheduled and start saving to pay back the loan asap.

It is not easy to save in this climate...I can save 5K / annum max. And if I manage to save that, then I should pay £15K to property lender in 3 years.

dimbo61

I would go for the long term fix and build up savings to pay back the debt to the developer or government ( which ever has the higher rate).
4.09% is a good rate and it gives you time to build up equity in your property