Pay off Help to Buy or Mortgage First?

getmore4less

brit1234 wrote: »

Prices are falling so wouldn't it be better to pay off the mortgage first. The equity loan would reduce with the falling prices so leave you less to pay off there later.

However we don't know how long prices will fall, by how much or what new props they will put up to keep the housing bubble inflatted this time. At least they can't lower interest rates any lower.

really, local markets may be different.

the key is that anything over the ERC free overpayments take 21 months to recover any ERC paid

use too much of the cash to reduce the mortgage and the OP then has the issue of funding the cash to pay off the equity loan if the market moves and needs to get in quick.

over the 4 year period the window the OP has left, the savings on the mortgage get mostly wiped out by 1%PA HPI.


timing the bottom may not be easy although OP does have the rest of the new builds to gauge the trend locally.