Part Ownership - the next step?

trimmtrab_2

Hi there

I have received interesting advice from people on here that instead of staircasing (buying extra shares of the property) I should instead overpay on my existing share.

However one person has suggested I wait until I can change mortgage provider and then plough savings into paying off the mortgage.

What would be the advantage of waiting for a new deal to pay it off then rather than making payments straight away?

quintwins

personally if it was me i would buy shares, then i'd look at getting a new mortgage as it's my understanding that the bigger stake in the property you own the better rate you get, also your just handing money over in rent i'd much rather have my money going to somethings (this coming from a renter lol but i begrudge every penny)

trimmtrab_2

............i understand that any mortgage is better than renting but everything Im handing over to the BS at the mo is all interest. What's the better option? Owning 50% but owing almost every penny of it or owning 30% (what I own now) and having paid off a fair portion?

charleyroo

Hi OP

I am overpaying my mortgage because the 30% that the association lent me is a) interest free and b) not time limited.

My plan is to pay off my £77k mortgage as quickly as possible, sell and never even think about the 30%. Unless, of course that I still want to live here once the mortgage is paid off - then I would save up however much 30% of the value is (currently £34ish k) which at my calculations once mortgage-free will take around 3 years.

brit1234

quintwins wrote: »

personally if it was me i would buy shares, then i'd look at getting a new mortgage as it's my understanding that the bigger stake in the property you own the better rate you get, also your just handing money over in rent i'd much rather have my money going to somethings (this coming from a renter lol but i begrudge every penny)

You can still get a better rate by paying the mortgage down. Staircasing makes it far harder to sell, just look at the MSE threads here where they have priced themselves out of the market by stair casing.