Existing shared ownership advice

prettyplease

Hi,
I usually post on the debt free wannabee boards (signature will explain why!) but would really appreciate some advice regarding my mortgage.

I have a mortgage for 50% of my home currently on a tracker 1% above the base rate. I am 7 years into the mortgage and this has reduced from 82000 to around 63000. I mortgaged 100% of my share with no deposit. Flats are currently selling for £189,000 - so I would currently have equity in my half. I would love to buy my home when my debts are repaid but am aware any new mortgage would not be on such favourable terms.

I have been overpaying by £100 per month but have just stopped this to clear my debts. Currently I plan to throw £1000 per month at my credit cards. Overpayments of £500 per month are allowed on my mortgage without penalty.

So I am looking to the future but wonder is it wise to stop these overpayments as really Im trying to build up more equity in the property I own to get a better deal when I sell or buy the remainder once my debts are clear in 2 years.

Advice would be most welcome!

opinions4u

I think you should clear the unsecured debts, then take stock.

Nothing wrong with aspiring to buy the rest of the property, but you're not really in a position to at present.

Annisele

When people try to increase the equity in their home, what they're really doing is trying to increase their net wealth.

In your case, putting your money towards your debts is going to have a much greater impact on your net wealth that putting it towards the mortgage - as the other debts will have a much higher interest rate.

prettyplease

Thank you both for very sensible advice. I will start making the lower payments from this month.