Shared Ownership Staircasing Deposit

DL39

I have recently purchased a 50% share of a shared ownership house, when my fixed rate ends in 5 years I am planning on staircasing to 100%. 
Is it better to put any extra money I have each month into savings to give a bigger cash deposit or to overpay on my current mortgage and have a lower amount to remortgage but a lower cash deposit when I staircase?
My mortgage rate is higher than my savings so I would save more in interest than I would lose by overpaying but I wasn't sure if a higher cash deposit is valued more by mortgage lenders when staircasing.
Thanks

haras_n0sirrah

Your deposit will be the difference between the value of your share and your outstanding mortgage so it doesn't make too much difference as to whether it is in the house or a saving account. What is the interest rate on the mortgage?

DL39

Thanks that's good to hear.

My interest rate is 2.49%. Am I right in thinking if I overpay and reduce the term more of my payments in the fixed term go to repaying the capital as there will be less interest charged?

haras_n0sirrah

You are unlikely to get that in a saving account so I would overpay provided you have some emergency savings for a rainy day (and for many it is currently pouring)