Part Ownership - Mortgage Advice

RichCH

I'm going to be speaking with a mortgage advisor soon but I wanted to see if someone out there has any better ideas over what we should be doing.

We're currently waiting to be offered a place now we've been accepted onto the scheme and it seems that we will get the place we want.

It's in London, 2 bed with a market value of £250,000. We're probably going to purchase a 40% share (£100,000) with £10,000 down as deposit, so 90% mortgage. It's working out that it's going to cost around £450 for rent and service charge on the 60% share we don't own.

Now it's looking like we can fix mortgage rated at around 5% for two years, meaning we have a mortgage of around £520 a month... so total outgoings of under £1000 which is great.

So what we're going to do is save around £200 in the bank every month and then see what happens in the future. If we end up having kids then we'll never have any money, or we'll hopefully purchase more of the property.

A few people have told us to overpay the mortgage if we can, but surely if we're aiming to buy more of the property we're going to need more deposit again to put down against the mortgage or will they take into account how much we've already paid?

I personally think that if we save the money in the bank at around £2,500 a year, in 4 years we could easily go on and increase our mortgage and take on another 20% of the value of the property.