Buying rest of Shared ownership

Pinkphoenix

I know people don't seem to be fans of this type of housing but here goes...

In 2007 my OH and I purchased a 25% share in a house (with a mortgage)

Due to a change in our finances we would like to purchase the rest of the property and the freehold.

We've spoken to the Housing Association and they say this is possible.

We still have a mortgage on the first 25%, is it possible to get a mortgage for the other 75%?

(Our credit file is clear and we could afford it)

opinions4u

Yes, but you will need at least a 10% and probably 15% element of equity in the whole property.

Talk to your current lender first - there will be valuation and legal fees and possibly stamp duty to consider.

e.g. if the property is valued at £100k and you owe £25k, you will probably only be able to borrow £60k-£65k and need to find the deposit for the difference.

Pinkphoenix

Thanks for this! We'll save now!

Is it better to save for deposit for this or to overpay current mortgage?

Sorry if this is an obvious question, I'm a financial dunce!

Pinkphoenix

Apologies for asking this again.

Just wondered if anyone knew?! I'm leaning towards saving for the deposit we'll need! But just want to be sure.