Overpay mortgage of pay off help to buy

stevetaylor20

Hi guys i have a question! I have some money and wondered do I either over pay my mortgage (currently 2.4% fixed for 2 years, no fees in overpayment) or pay off the local council who own the 20% (52k) in my property? I'm just not sure which is best. With this govt. scheme I have to pay off the 52k in full (no partial payments allowed), + increase in market value, so it could possibly be 55k now given that you have to pay it off at the increase in value, so 20% at that time of payment

any thoughts would be great. i honestly don't know if i'm still going to be there in 5 years or not..

dimbo61

If you have enough money to pay off the 20% loan I would do that but it is Interest free at the moment.
The rest of the loan is at a very good rate.
If you can afford the £52/55K now it may save you paying £60/70K in five years due to increase in property values.
With the 20% paid off you would then have 75% or better LTV when you remortgage and it will be easier to sell 100%.of the property

d70cw6

what are your overpayment limits on the mortgage?