Buy more or pay off mortgage?

astar_2

hello
I don't know if anyone can help me with this, i am not very good with complicated calculations!
We currently own 50% of our house under shared ownership (50% valued at approx 77,000) and have a mortgage of 65,000. We are soon receiving around 40,000 (not redundancy or anything so it is surplus to our everyday spending). What i would like to know is whether it would be more beneficial to buy a further 25% of the house or whether to pay a lump sum off of the mortgage.
We currently pay rent of 158pcm on the 50% of the house we don't own, which would decrease to around 80pcm if we bought a further 25%
I cant work out which is the best idea financially and in terms of our next move up the property ladder (we will probably be looking to move in a year or two).
At present we pay 250pcm as overpayments on our mortgage, but if we payed off a lump sum we could probably then overpay by about 400pcm (and put away some money in savings each month)
Oh, also, as we are on a 2 year tracker I think we will have to pay about 700 penalty for paying the lump sum, but then again, if we decide to buy more of the house, we have to pay fees (likely to be about 500)
I'm soooo confused so hope that this makes some sort of sense to somone as I am also really bad at explaining things!!!

Dani85

In my personal opinion, I would buy a further 25% share. That way you still have the same amount of mortgage but you own more of the property thus it being more beneficial to you in the long run.

gaetss

For me it depends on the house price. if it is going up, buy part of the house, oherwise put it in a saving account (>7% interest), and use it as part of your deposit when you remortgage or buy another place.