Shared Ownership - Pay off more or save? 18 June 2007 at 10:08PM in Mortgage-free wannabe 2 replies 967 views

luckylukey

Hi!
I was wondering whether I could get your opinions!

I have recently bought 40% of a shared ownership flat, and was wondering whether I should pay off more of the mortgage I have (just under £80 000) or whether I should put what I would pay off extra into a ISA and save towards buying a higher share of the flat?

The mortgage is for 25 years and I will probably only live here for max 7 years so am unsure of where to put my money. I would have about £300 a month to put towards either option

Thanks,

diamonds

id open a A&L direct current account and get the 10% savings account with it, you can pay in 250.00 a month for a year then transfer to a better rate a/c at that time then buy a bigger share right out of the flat come re-mortgage time, savings rates are higher than mortgage rates if you look in the right place. also if you can overpay the mortgage that 50.00 comes straight off your inital 80.000 borrowing after your months intrest on your mortgage payment or else invest the 50.00 in another high rate savings account like martins recent recommendation http://www.icicibankukhisavepromotions.com/lms_ct/UK_LP/index.asp?PAGEID=1&USERTYPE=MSM_TL

whats your mortgage details ?
tie in period ? rate? fixed ? capped ? flexible overpayments ? etc etc....

luckylukey

its fixed at 5.5 for 5 years . I can make overpayments to 10% a year on the amount outstanding.
But thanks - will look into a high saving account