Shared Ownership

Rannoldinho · 18 January 2019 at 11:29PM

Hello, hoping somebody can help me. I'm currently in a shower ownership property, having a 40% share, so paying around £500 mortgage and £400 rent. I got my mortgage statement through recently and off the £6000 I paid, £4800 went to interest and £1200 went to mortgage. Now considering I'm paying nearly £5000 in rent, of the £11,000 I paid towards the house, only £1200 seemed to have paid off the mortgage. I thought shared ownership was supposed to be a great way to get my foot in the door, but have I made a mistake by doing so? Am I now on track to only ever pay £1200 a year?

My goal is to sell what my share is worth in a few years time to my a property outright, but am concerned of how many years of £1200 it's going to take to generate a good deposit. Over payment is an option but would strain family life finances.

Any help or advice on this would be amazing, and much appreciated.

Pete

cjv · 19 January 2019 at 12:43AM

The first few years of paying your Mortgage will mostly be going on interest and not the principle, it is not specific to Shared Ownership.

As you are aware, you can overpay to reduce your Mortgage faster. You can also remortgage to a better rate if/when you can.

Hopefully you will also benefit from an increase in the value of your property over the years.

Rannoldinho · 23 January 2019 at 12:08PM

Thank you for your reply. That does put me at ease a bit. Always hard when only a small percentage of your monthly house payments are investing in the house.

Shared Ownership

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