Overpayments on mortgage

LukeS99

Hi all,

I moved into a shared ownership home with my partner in February this year - We have a mortgage for 25% which is £89,605. 

I am thinking to the future, in 4/5 years we are hopeful that we can move on and buy 100% of another property so it gets us out of shared ownership.

is it worth overpaying on the mortgage? We can easily pay an additional £400/500 towards it on top of the £600 we already pay. Will this help us with equity in the future when we decide it’s time to move? 

I’m new to all this so just trying to figure out if overpayments are actually worth it in this situation? 

Thanks

Luke

amnblog

£500 extra paid off this month is £500 you are not paying interest on going forward.

LukeS99

amnblog said:

£500 extra paid off this month is £500 you are not paying interest on going forward.

Thank you, I think what I am trying to ask is if over 3/4 years I make an extra £500 a month overpayment will that give me more equity when I go to buy a different property and sell my one? Or will it only knock off the interest? 

Sorry I may not be explaining it very well!

amnblog

The more you put in now, the less you will owe in 2027/28

BarelySentientAI

Every £500 you overpay is £500 more of the house that you own and £500 less of the house that the bank owns.

BonaDea

I don't mean to be cruel, but over-optimistic assumptions and lack of financial prudence have got you where you are now.  Why continue in that vein?