Shared ownership mortgages

tony3619

Hello,

Just wanted to get people's opinion on overpayments on a mortgage which is a shared ownership? 

Its weighing up whether to overpay on the 30% mortgage or keep the savings to cover rent increases which always go up by inflation + 0.5% which we know is probably going to remain high.

stuartp2000

Hi Tony

It does all depend on your personal circumstances and financial position, but 
one option would be with interest rates likely to be higher than the mortgage rate would be to save that up.
Then when your mortgage is due for renewal you can either over pay or use that as you say to cover rental increases, even possibly stair case.

Stair casing will in turn reduce the rent payable on the remaining %, thus helping to save some of the inflation impacts.

fletcher1985

I got my shared ownership in 2016 at 50% and i always wanted to buy the other 50% so I over paid as much as I could so the next re mortgage I managed to buy another 30% of the house and then the last 20%. I always feel shared ownership is best when you plan to buy all of it because my rent was going up every year at least £30 a month. at 80% I was paying more rent then mortgage.