Overpayment or HTB Payment

iViewTV

Morning. Fortunately I’m in a position with my partner that we have some spare money we can put away every month. We moved into our house last June as first time buyers, therefore we took out the Governments HTB deposit scheme. 

My credit score wasn’t the best, therefore we had to take a mortgage out with Viva Homeloans, luckily we fixed in for 5 years at 3.94%. 

After our 5 years are up I understand we will have to start repaying our HTB deposit back. I’m just curious as to whether we would be better overpaying our mortgage or keeping a sum at one side to pay off our HTB deposit. 

Thanks I’m advance!  

chanz4

After 5 years can just pay the intrest which at the moment is the better choice to leave, overpay your morgage

GMac14

I had a similar query. My Situation is we are two years into 5 year fixed at 1.99% and was looking to heavily overpay on mortgage for next three years to get it down to a level whereby we could remortgage and pay off the HTB loan which was £42k orginally, but when I have looked at interest rates on £40k HTB loan (example below) I might overpay mortgage still but just leave HTB in place and pay the interest until I am in a position to either pay haf of the HTB off or all of it.

Year 6 pay 1.75% / £712 interest per year,
Year 7 pay 1.8% / £733
Year 8 pay 1.86% / £755
Year 9 pay 1.91% / £777
Year 10 pay 1.97% / £800