Property News · December 5, 2022

Should our savings go towards the help-to-buy loan or overpaying a new mortgage?


Our five-year fixed-rate deal ends soon, we have saved £100,000 and need the best remortgage strategyQ My husband and I purchased a property in May 2018 for £600,000 using the London help-to-buy scheme. We took out the maximum help-to-buy loan of £240,000 and put in a £30,000 deposit. At the time we had a very reasonable five-year fixed-rate mortgage with an interest rate of 2.48% but are aware that – as we are nearing the end of the five-year period – we are unlikely to get such a good deal when we remortgage.We are fortunate enough to have saved £100,000 between us and are wondering about the best strategy to keep our costs low when we remortgage, and how to split this amount between the mortgage and the help-to-buy loan repayment. Currently we are overpaying our mortgage by about £200 a month, although we can repay up to £30,000 this year without penalty. Continue reading…

Source : theguardian.com
Read more…Should our savings go towards the help-to-buy loan or overpaying a new mortgage?

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