Mortgage advice

steevs28

Hi all,

Looking for some advice on my predicament, hope somebody can help.

I bought my property back in 2009 on a 75% mortgage, basically the other 25% was an interest free loan repayable after 10 years and it will be 25% of market value at the time.

The purchase price was £106,000 and my mortgage was £77,000 I believe. My monthly payment is £344 now with an apr of 3.64%, I made a lump sum payment of £4500 in the first year and as a result of that I have about £65,000 outstanding.

For the first time since I took the mortgage I am now in a position where I can easily save £500 a month.

My question is would it make more sense to make overpayments on my mortgage (I can overpay 10% a year without penalty) or start to save for the lump sum with I need to pay the shared equity company in 4 years time.

Would appreciate some advice if possible.

sourcrates

steevs28 wrote: »

Hi all,

Looking for some advice on my predicament, hope somebody can help.

I bought my property back in 2009 on a 75% mortgage, basically the other 25% was an interest free loan repayable after 10 years and it will be 25% of market value at the time.

The purchase price was £106,000 and my mortgage was £77,000 I believe. My monthly payment is £344 now with an apr of 3.64%, I made a lump sum payment of £4500 in the first year and as a result of that I have about £65,000 outstanding.

For the first time since I took the mortgage I am now in a position where I can easily save £500 a month.

My question is would it make more sense to make overpayments on my mortgage (I can overpay 10% a year without penalty) or start to save for the lump sum with I need to pay the shared equity company in 4 years time.

Would appreciate some advice if possible.

Hi,

There is a mortgage board on the forums, you may get a better response posting on there ?


http://forums.moneysavingexpert.com/forumdisplay.php?f=15