Hello people of r/personalfinance!
I have recently purchased a property with my partner, with the "Shared ownership" scheme in the UK.
The idea is simple: The property cost 215000, we purchased 40% at 86000, with a 10% downpayment. Our mortgage is at 3.2% and we are paying about 380 a month, with the possibility of overpaying 10% of the remaining debt a year. We can also purchase more of the property (each % is 2.15k)
We don't plan on living here for ever, so ideally we would look to resell in 3-4 years.
Here's where I need your advice: Should we buy more and more of the house, or should we overpay the maximum we can so our debt gets lower and lower ( and of course the interest )
An overpayment this year would mean paying 7800£ and if we do this yearly we would be saving around 34k£ in interest (but on 40% of the house)
Thanks!
Submitted August 07, 2021 at 06:06AM by youraveragevet https://ift.tt/3Cna918
