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Mortgage vs Saving dilemma?
Cheryl2022
Posts: 63 Forumite
Hi,
I have a little dilemma and would appreciate your advice. I currently live in a shared ownership property where I have a small mortgage for 25% share of the house which I pay £201 and I pay £450 rent for the remainder. I enquired about buying the full 100% of the house but because my credit ratings not great and interest rates are high the repayments for the mortgage were coming out at £1157 per month for 33 years borrowing £161500. So what I am asking really is should I stick as I am and put money between £500-1000 away per month and save a hefty sum instead as I worked it out and they are charging me over £300k in interest?! Thanks x
I have a little dilemma and would appreciate your advice. I currently live in a shared ownership property where I have a small mortgage for 25% share of the house which I pay £201 and I pay £450 rent for the remainder. I enquired about buying the full 100% of the house but because my credit ratings not great and interest rates are high the repayments for the mortgage were coming out at £1157 per month for 33 years borrowing £161500. So what I am asking really is should I stick as I am and put money between £500-1000 away per month and save a hefty sum instead as I worked it out and they are charging me over £300k in interest?! Thanks x
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Comments
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Pay the mortgage off. Though pay off all other debt first.0
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Do you want to stay in the property long term or is it likely you'll want to move at some point? If you'll want to move I'd be tempted to save as much as possible and put the cash towards the new place.0
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Is there an option to buy in a bit more eg another 25% or another 50% ... if so that might work for you. Guessing that since you are thinking about this, then you do want to stay where you are mid to long term.
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