Shared Equity coming to an end..Help!

Kelpla

I am new here so please bear with me! I bought my house for 140k on a 70%/30% shared equity scheme in June 2008, having 5 years before I either buy the remaining 30% or have to pay interest on it at the Bank of England base rate. I also put down 4k as a deposit so the mortgage was 94k on repayment.

My dilemma is this...my fiance and I would like to move to a bigger property but do not have any savings for a deposit so are currently saving like mad. Should I sell the property before the 5 years is up and look to rent until we have a deposit big enough (we are looking at properties around the 200k mark) or should we stay put and pay the interest?

HiYield

I am fairly new also, but I have experience of shared ownership.

Points to note:

While you are there and paying the mortgage, you are building up equity if you have a repayment mortgage, which I think you must do with shared ownership? So this is a plus for staying.

Can you afford the higher payments when the interest kicks in?

Have you thought about overpaying your mortgage? This counts as savings, but also reduces the interest payable on your mortgage - this will depend on whether you can make overpayments.

I would compare the rental cost of moving out to the interest you're paying each month when the new rates kicks in. If they are roughly the same then you will continue to build equity on your monthly payments each month (if you have a repayment mortgage) by staying put.

You also have to consider the hassle of finding somewhere to rent. The deposit you put down when you rent also.

Good luck