Save to pay off H2B loan or over pay on my mortgage whilst it is still in the fixed term period?

dan8030

I have recently taken out a mortgage with the Nationwide for a new build property, I took advantage of the H2B loan and am aware that I have 5 years to pay this back or add it to the mortgage.
My question is should I be saving to pay off the H2B loan or would it make more sense to over pay on the mortgage?  I can over pay 10% of the mortgage each year, but won't be over paying that much, more like about 5% across the year.
Thanks

K_S

@dan8030 The most common route that H2B buyers take is to remortgage at the end of 5 years and pay off the equity loan at that point. You will have to do the numbers to be sure but it may make sense to overpay and bring down your LTV over the period of the current fix.

dimbo61

You are paying interest on the mortgage while you have a 5 year Interest free loan in the H2B loan so it makes sense to overpay what ever you can each month.
If you can reduce your debt over the next 5 years you will get a better remortgage deal when you add the existing mortgage plus the H2B loan

getmore4less

You don't have to pay it off after 5 years
depending on HPI, LTV, interest rates it may be worth keeping it running for longer once the interest kicks in.

dan8030

Thanks for the comments, much appreciated. I will overpay the mortgage.