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Shared Ownership - Overpay Mortgage or Staircase?

Hi all,

I currently own 55% of a house, 100% value is £315,000. I've got a mortgage of £123,000 left over 30 years. My fixed term ended a few months ago and I'm now on a 5 year fixed rate. 

I've been putting around £550 into a "House" savings (2.7% interest) account with the plan of buying extra shares at the end of this fixed rate (maybe an extra 10% based on what I'd save), and then add more to the mortgage as well to maybe take me to around 75%. I have no intentions of moving house, but I'm wondering whether overpaying my mortgage or staircasing would be better.

Obviously my overall plan is to own 100% and pay off the mortgage as soon as possible.

Any thoughts would be much appreciated.


  • peb
    peb Posts: 1,805 Forumite
    Name Dropper Combo Breaker First Post First Anniversary
    My initial instinct was to staircase, however staircasing can be free heavy if you aren't able to go to 100% and go in stages.  

    No one can predict the property market nor interest rates ,. The issue to decide is if you think the value of the equity will increase rapidly from now so you'd be better off staircasing or if prices will decrease then if you think mortgage rates will increase so you're better off overpaying. Maybe do some calculations 

    No simple answer 
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