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  • FIRST POST
    • donfanatico
    • By donfanatico 15th Mar 17, 3:29 PM
    • 451Posts
    • 204Thanks
    donfanatico
    shared ownership remortgaging
    • #1
    • 15th Mar 17, 3:29 PM
    shared ownership remortgaging 15th Mar 17 at 3:29 PM
    Hi all.
    Looking for advice from people who have been through this already as I am collecting general information on shared ownership remortgaging in preparation for the situation a few months down the line - our initial 2 year fixed is expiring and SVR is not great.

    When we bought we had a severe limit on lenders due to low deposit and being a new build.
    Now that we have overpaid and have more equity and as it is no longer a new build, will the options for lenders be greater? I do appreciated that it is still a shared ownership property but I am hoping the choice for lenders will be bigger - is that the case in your experience?

    Additionally, if we are able to would you try to buy more shares at the same time, provided the lender is happy to lend more on top of the remaining mortgage or go to a new product first and then save more and try to buy at a later stage?

    Many thanks in advance.
Page 1
    • siamesebengal
    • By siamesebengal 15th Mar 17, 4:17 PM
    • 11 Posts
    • 5 Thanks
    siamesebengal
    • #2
    • 15th Mar 17, 4:17 PM
    • #2
    • 15th Mar 17, 4:17 PM
    You should do.
    One thing to check with the lender is how they do the LTV calculation. With the way SO legislation changed, some lenders will do the LTV based on the full market value rather than the value of your hare (as that is what they have security over), which should get good rates.
    I know Nationwide, Santander and HSBC have their standard products available for SO, would expect others to as well.
    • donfanatico
    • By donfanatico 15th Mar 17, 4:20 PM
    • 451 Posts
    • 204 Thanks
    donfanatico
    • #3
    • 15th Mar 17, 4:20 PM
    • #3
    • 15th Mar 17, 4:20 PM
    "You should do" - which part please? More lenders or buy more shares?
    • kingstreet
    • By kingstreet 15th Mar 17, 4:25 PM
    • 32,211 Posts
    • 17,250 Thanks
    kingstreet
    • #4
    • 15th Mar 17, 4:25 PM
    • #4
    • 15th Mar 17, 4:25 PM
    Remortgaging and/or staircasing carries costs - legal and admin. The HA will want paying too.

    In addition, you will have to have sufficient equity to satisfy the lender's requirement for the loan to value of the new owned share.

    For example, if they will lend for example only upto 90% of the new total, is your equity going to be worth 10% of that higher figure?

    Check your existing lender's customer retention products before you get too far down the remortgage route.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • siamesebengal
    • By siamesebengal 15th Mar 17, 6:57 PM
    • 11 Posts
    • 5 Thanks
    siamesebengal
    • #5
    • 15th Mar 17, 6:57 PM
    • #5
    • 15th Mar 17, 6:57 PM
    "You should do" - which part please? More lenders or buy more shares?
    Originally posted by donfanatico
    Have access to more lenders - the LTV limits are often higher once it's not a new build. Bear in mind though some lenders still consider a property a new build if it's less than 2 or 3 years from first occupation.

    Buying more shares depends on your own circumstances and desire. I decided against it, but probably for quite different reasons to what you're considering. Also, note what Kingtreet said.
    • donfanatico
    • By donfanatico 15th Mar 17, 7:17 PM
    • 451 Posts
    • 204 Thanks
    donfanatico
    • #6
    • 15th Mar 17, 7:17 PM
    • #6
    • 15th Mar 17, 7:17 PM
    It will be just over 2 years since we completed when the current deal expires but around three since the HA took handover. Not sure what's counted there. Good point though.

    If it's not a secret and relevant to here, why did you not want to buy more? I am torn between letting equity build and the sell up and get something on the open market or aiming at 100% ownership.
    • donfanatico
    • By donfanatico 15th Mar 17, 7:20 PM
    • 451 Posts
    • 204 Thanks
    donfanatico
    • #7
    • 15th Mar 17, 7:20 PM
    • #7
    • 15th Mar 17, 7:20 PM
    I've just read on different banks intermediary pages and LTV seems to be still calculated on the share Owned not the whole property value, I may be wrong though need to investigate further
    • siamesebengal
    • By siamesebengal 17th Mar 17, 5:24 PM
    • 11 Posts
    • 5 Thanks
    siamesebengal
    • #8
    • 17th Mar 17, 5:24 PM
    • #8
    • 17th Mar 17, 5:24 PM
    It will be just over 2 years since we completed when the current deal expires but around three since the HA took handover. Not sure what's counted there. Good point though.

    If it's not a secret and relevant to here, why did you not want to buy more? I am torn between letting equity build and the sell up and get something on the open market or aiming at 100% ownership.
    Originally posted by donfanatico
    Essentially not buying more means I have more flexibility, if there's a slowdown in the economy combined with house prices falling, and I don't think the near term path for house prices in my area justifies losing that cushion. Security of tenure (the main reason I bought) is already there, so the only reason to buy more is financial.

    I've just read on different banks intermediary pages and LTV seems to be still calculated on the share Owned not the whole property value, I may be wrong though need to investigate further
    Originally posted by donfanatico
    Most do, and even if they use the full value, there will also be a maximum LTV on your share (that's what HSBC did - max 85% LTV on your share, but product offered was based on full market LTV).
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