Disposable money use for Help to Buy mortgage

Noobie2011

Hi All,

I am probably getting a bit ahead of myself here as we are only just going through a HTB Mortgage application with Natwest and nothing is certain due to our current debt and past conduct but fingers crossed it all goes through so wanted to ask this question so I can plan ahead.

If everything goes through we are going to have a bit of disposable on top of our living costs and wanted to try and work out where it will serve us best.

Our Mortgage if goes through will be a 5 year fixed on 2.18% as we thought best to take the slightly higher rate than a 2 year one as we will know exactly our payments for the 5 years. The equity loan we will be getting would be £52k.

We have potentially £4-600 a month we could use to either overpay on the Mortgage, pay towards remaining debts to get rid or invest £400(max we can on this scheme) in my wifes work Sharesave scheme which would then after 3 years depending on the profit if made one be used to pay onto the equity loan.If we did the latter then we would have £200 to then put on debts or Mortgage overpayment.

So has anyone got experience of the best way to work it out as at the moment the safe and best thing to do would be overpay on the mortgage as the savings in Interest seem to outweigh any profit made on the Sharesave or paying debts off.

Thanks for any help