Advice please

edited 26 October 2015 at 1:56PM in Mortgage-free wannabe
2 replies 524 views
x90tsbx90tsb Forumite
42 Posts
edited 26 October 2015 at 1:56PM in Mortgage-free wannabe
Hi all,


After some advice please.


In June this year I moved in to my first home (FTB). Purchase price £165,000 - this is made up of a mortgage of £107,000, H2B of £33,000 and deposit of £25,000. The mortgage I have is with Nationwide, 2.94% 5 year fixed rate.


I am now four months in and have approx. £500 left over after all out goings each month. I want to do something with this money, and don't know whether to:


A - Put the cash in a savings account, in year 5 (before the interest kicks in) use the money to pay off as much of the H2B as I possibly can. I will then have to add the remaining H2B balance to the mortgage.


B - Simply over pay the mortgage each month and add the H2B to the mortgage in year 5 before the interest on H2B element kicks in.


Any advice really would be much appreciated


Thanks,


Tom

Replies

  • LuckyinlifeLuckyinlife Forumite
    1.6K Posts
    Forumite
    I looked at the HB2 myself never went for it in the end but i thought the idea would be to save enough in the 5 years to pay it off at the end as its interest free im a FTB myself

    so for you youv had 33k interest free on your home which is great :]

    i would look at op an amount every month after you have saved towards and ef Emergency fund
    Mortgage--- [STRIKE]£67700 March 15[/STRIKE] [STRIKE]£65221 April 15[/STRIKE] [STRIKE]£64983 July 15[/STRIKE] [STRIKE]£64780 sept 15[/STRIKE] Remortgage [STRIKE]£67295 oct 15[/STRIKE] [STRIKE]£66599 Nov 15[/STRIKE] [STRIKE]£65878.73 Dec 15[/STRIKE][STRIKE] £64834 1st Jan 16[/STRIKE] [STRIKE]Feb 16 £64,511.89[/STRIKE][STRIKE] March 16 £64,056.40[/STRIKE] [STRIKE]April 16 £62550[/STRIKE] [STRIKE]May 16 £62,396.20[/STRIKE] Feb 17 £60.800
    Emergency fund 23k
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