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Help to Buy Equity Loan - Repay or Wait
Options
Silverum
Posts: 18 Forumite
Hello
I am just looking for a bit of help please and would appreciate opinions.
We have a 20% help to buy equity loan. Our mortgage term is coming to an end and we have some options from our mortgage broker.
We are now in the position where we can pay off our equity loan, by combining it into our regular mortgage. This will cost us around an additional £400.00 pcm.
However due to the house move and a few things over the past year, we have very little in the way of savings. If we didn't pay off the loan, we could save this amount and over two years giving us a savings pot of £9600.00.
Obviously we would then have to pay 20% of what our house will be worth in another 2 years time which will cost us more money. I would estimate this additional cost to be between £8 and £10k. Obviously can't be certain though.
Sorry if we are asking something really obvious - would we be more responsible getting rid of it, or getting our savings back on track.
Any insight would be appreciated.
Many thanks.
I am just looking for a bit of help please and would appreciate opinions.
We have a 20% help to buy equity loan. Our mortgage term is coming to an end and we have some options from our mortgage broker.
We are now in the position where we can pay off our equity loan, by combining it into our regular mortgage. This will cost us around an additional £400.00 pcm.
However due to the house move and a few things over the past year, we have very little in the way of savings. If we didn't pay off the loan, we could save this amount and over two years giving us a savings pot of £9600.00.
Obviously we would then have to pay 20% of what our house will be worth in another 2 years time which will cost us more money. I would estimate this additional cost to be between £8 and £10k. Obviously can't be certain though.
Sorry if we are asking something really obvious - would we be more responsible getting rid of it, or getting our savings back on track.
Any insight would be appreciated.
Many thanks.
0
Comments
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Assuming your loan doesn't come up for another 2 years before you have to pay it off why not put that cash aside in a savings account and see how you go for the next 12 months?
If you can prove to yourself that you can put that money away without the temptation to spend it then good for you BUT on the other hand if you can't save that cash then maybe you are just better off rolling the equity loan in to your mortgage and just being done with it?
Regards
Mailman0
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