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HTB - Overpay mortgage or buy more %?
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HomelessChump
Posts: 20 Forumite
Hello folks,
I own a flat with a 40% HTB equity loan and I have four years left until the interest payments kick in on that 40%.
Fortunately, my salary has increased since I bought the flat and I have a decent amount of money spare at the end of the month. I should put some of this into the property but I'm not sure whether it would be better to (a) increase the monthly mortgage payments on the 60% or (b) use the extra affordability to increase my mortgage and reduce the size of the HTB loan.
The HTB calculator suggests I could now just about increase my share from 60% to 90%. My property is in a decent location in London so the value of the 40% that HTB has an interest in is likely to continue increasing (unless Brexit tanks the economy!) and the amount that I could buy off HTB will steadily reduce.
Does anyone have any advice? If there isn't a clear right answer to this then I'll just leave the existing arrangements alone and overpay on the mortgage.
I own a flat with a 40% HTB equity loan and I have four years left until the interest payments kick in on that 40%.
Fortunately, my salary has increased since I bought the flat and I have a decent amount of money spare at the end of the month. I should put some of this into the property but I'm not sure whether it would be better to (a) increase the monthly mortgage payments on the 60% or (b) use the extra affordability to increase my mortgage and reduce the size of the HTB loan.
The HTB calculator suggests I could now just about increase my share from 60% to 90%. My property is in a decent location in London so the value of the 40% that HTB has an interest in is likely to continue increasing (unless Brexit tanks the economy!) and the amount that I could buy off HTB will steadily reduce.
Does anyone have any advice? If there isn't a clear right answer to this then I'll just leave the existing arrangements alone and overpay on the mortgage.
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