where to go for mortgage? please help!

f1slikki

Hi there, I have found a place to purchase and can get it on an 80% shared equity (no rent or interest, 10yrs to buy other share) however as this is a new build property Abbey will only offer 75% mortgage which is leaving me stumped. I have contacted the builders to see about reducing the % share but apparently this cannot be done.

I have a fair credit history no ccjs however 2 settled defaults which 1 was for £120 & the other £50 other than this things are ok for the mortgage.
myself & spouses salarys are fine for the mortgage amount required however we dont know who to try or if there are any other companies that we can try where we could get the 80% mortgage.

I have read on here a lot of people who have had DMP's, IVA's & other financial issues talking about mortgages and there always seemed to have been someone out there to help however my broker has advised me tha abbey is my only option.

Might look into a loan for the other 5% however do not want my expenditure too high for this either, any ideas would be appreciated.

many thanks

UK007BullDog

Just to make a point here so you understand my thinking: I hate, loathe and despise the shared equity property/mortgage con.

Dont do it if you value your sanity.

Pitfalls: even if you find a mortgage ad a lender willing to lend you will end up in tears:
1. If you ever want to sell. the new buyer might not be able to get a mortgage. In effect you have locked yourself in for the next 10 years.
2. Are you sure you can save up enough in the next 10 years to pay the extra 20%? Remember you still have our mortgage to pay and all the other costs.
3. Newbuild flat: You are going into negative equity right away.
4. You are stuck with the lender, can never move to a better deal as long as you do not own the 100%.


As I have left the mortgage arena I cannot say why you just have one choice, probably due to your poor credit record and Abbey is soft on small debts.

Personally you want a 100% mortgage but Abbey is saying you need to put down at least 5% of your own money. If you dont have that you can say goodbye to this property type.

Anyway right now is not the right time to buy. save up and buy next year or the year after.

f1slikki

thanks uk007, not what I wanted to hear however I do understand what you are saying & believe me I have thought of this myself regards to falling market,etc.
just have to wait & see.

thanks