re-mortgaging soon, never paid HTB what are the best options?

james_uk

Hi, we are coming up to having our mortgage for 10 years.

We were very late realising that paying the HTB straight away was the cheaper option, by which time, when we re-mortgaged at 5 years, we decided to just carry on paying the interest and it kinda got forgotten about.

Now that we are going to be re-mortaging again soon, as it was a 5 year deal, we are wondering what really is the best thing to do regarding the HTB payments?

Am i right in assuming the longer you leave it, the more expensive it is, because it's based on your property price?

If we are wanting to now start paying it, is there anything we should know, or any changes that have been made to the process we may not know about?

I think another reason we opted to not pay it after the 5 years was due to my partner is always saying she know longer likes the area we live anyway, so would actually like to move, but that's not something we have started doing yet anyway, but not sure if or how that would affect things with HTB?

Thanks

James

silvercar

If you move you clear the HTB at the same time.

So if not moving you need a view on what will happen to house prices in the next few years and whether the interest you pay on the HTB is lower or higher than your new interest rate. If you think the property value won’t increase AND you are paying a relatively low rate on the HTB loan, then keep the loan going. If you think the value of your property will increase and/ or the interest rate is higher than your mortgage then pay it off by increasing your mortgage.