Best way to Invest/Save to pay off help to buy

Bigwheels1111

The 20% you owe ?, is that of the market value of the house when purchased or today’s value.
If so how much is that today.
200k house you owe 40k.
10 years time and your house is 300k, so 60k owed etc.
Could you pay off 10% now or all of it.
The house cost over 10 years might be more than you get from investing.
Never invested so know nothing about it.

L82theparty

@Bigwheels1111, 20% of market value. It’s a new build estate ( or was at the time) and 1000’s of houses built. We were phase 1 so our house increased in value by around £80k by the time all phases got finished but held steady now as lots of houses come to market regularly. Bought for £250k, current market value £330k. 

In comparison, my previous house (2 min drive but 1960’s build) has went from £120k to £220k in same timeframe. 

I can pay 10% off but will take me 2years to save if I stick to the £1350 I’ve allocated. We’ve had a really quiet 12 months as we put everything into reducing bills/ clearing cars/loans/ credit cards and so on so it would be nice to do a few things again. 

We don’t have to pay the help to buy back until we sell but I want to clear it. I don’t want to add it to the mortgage and increase term as fixed payments/ interest is high so trying to save/invest to get the money together. 

L82theparty

Sorry, market value at time of selling or paying back help to buy. But, the help to buy allowed us to have reduced interest because 75% loan to value. At the time I was a mature student so one income house as I wasn’t earning. But then we dropped 10 years off the mortgage term after initial 5 year deal. 

dunstonh

Sovereign_Hunter_999 said:

s&p 500 until you get your bearings.

You have said this on multiple posts now.   Yet it is poor advice and you should stop.

Yorkie1

A first priority should be to ensure you have a decent rainy day fund (up to 6 months' expenses, or even income) in cash. You may already have that covered.

Then, as others have said, it's a balance between factors such as when you might wish to access investments - pensions won't be available until you are 57 (unless your work pension has an earlier age date), but they do give you the tax benefits of enabling you to pay less higher rate tax (or even none); S&S ISAs will be tax free when you access them and are flexible in when you can access them.

I am trying to find a flowchart which helps the thought process, which another poster often puts up a link to, but my brain has drawn a blank just now ... !