Mortgage free or staircase to 100%?

f1_Fanf1_Fan Forumite
13 Posts
10 Posts Second Anniversary
Forumite
Hi all,

Was hoping to have some advice or anyone that had/is going through the same situation as me...

I bought 50% (£200,000) of a shared ownership 2 bed apartment last year and has been going great. I brought a lodger in and this has allowed me to save a lot and with savings and good pay rises, I'm now in a position that I can either pretty much pay off my remaining mortgage (£156,000) on the 50% share which is great.

I'm wondering if it's better to not pay off the mortgage and use the savings to staircase to the 100% for the apartment. I've enquired and I can do so. A 2nd mortgage is possible and would leave me having repayments between £200-£300 a month. I wouldn't then need to pay the rent to the HA no more (which is £233). It would then allow me to buy-to-let if I do decide to move away which is always an option. I do want to keep hold of the apartment as the valuation has the potential to rise over the next few years with the development that's going on.

Wondering if anyone has gone through something similar and any thoughts/tips with this?

Many thanks !!



Replies

  • powerspowerspowerspowers Forumite
    762 Posts
    500 Posts First Anniversary Name Dropper
    Forumite
    The numbers seem to add up if the new mortgage is similar to the rent you are paying. I don’t know a lot about shared ownership so haven’t got anything in the way of advice- the mortgages board may be more appropriate. 
    MFW 2021 #76 £5,145
    MFW 2022 #27 £4,160 / £7,200 target 


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