Mortgage overpayment, LISA or HtB repayment

sufjanspirit

Hi all,
We are currently in negative equity and are looking at the best way to get out of it, and strategising our way towards a new home for a family. Details are:

• Valuation £140,000
• HtB Scotland 20% ownership (SG repayment would be approx. £28,000)
• LISA savings - £4k
• Mortgage interest & repayment - 2.18% / £554 pm (repaying ~£330 off capital pm)

Currently our plan is to overpay on the mortgage > LISA > HtB. Realistcally, we will save for future mortgage repayments prior to buying back shared equity as there is no loan on it. 
My question is, is this the right strategy? The valuation has dropped £60k from initial purchase, and we would like to be out of here as soon as possible. Realistcally, we can save around £1200 a month.
Finally, we have a potential £10k from our honeymoon (which we are devastated we cant go on as it was our holiday of a lfietime) that potenitally could be put to that instead. if this is usable, does this change anything?

Thank you all, and if you need any more information just ask!

Sufjanspirit

MovingForwards

How much is outstanding on your mortgage?
When did you buy the property?

sufjanspirit

Property was bought in May 2014, and currently has £115k left to pay. I had that on originally but the browser crashed and i forgot to put it in!

Niv

If you have £115k left to pay and the property is valued at £140k, how are you in negative equity? 

MovingForwards

£115k mortgage + £28k H2Bs = £143, less £140k valuation = use your honeymoon money to pay the difference plus legal fees and EA fees.