Shared Ownership Mortgage Lenders interest rates??

LondonSW5

I currently have my mortgage with Halifax and want to staircase and buy another 25% share.
I do not know whether to go for a fixed rate..or variable rate mortage. I have been quoted a fixed rate for 3 years by Halifax of 6.49%. Will other mortgage lenders be better? Are they all pretty much offering the same deals right now?

I am wondering if this rate is a bit high?.....or normal given the circumstances at the moment? Can i do better elsewhere? What type of mortgage is going to work out cheapest for me? I am looking for Interest only for 2 years or 3 years.

Thanks

Tiddler_2

I would ask why you are choosing to buy another 25% now? Particularly if you are looking at having it on an interest only basis - surely to keep renting the 25% would be cheaper.
House prices/values are still falling so would be better to look at the value of it in about a year's time.

Also the options for shared ownership are limited as only 10 or so lenders will look at them.

LondonSW5

Thanks for reply.
I need to buy another 25% share at moment..for complicated reasons that i wont go into here.....but can we really be certain that they will continue to fall? Also if they do fall i would then buy a further 25%...!
Do you have any thoughts on mortgage rates for shared ownership properties at the moment?

Saipan

Hi Tiddler

You mention that only 10 or so lenders will consider shared ownership. My daughter has been told by her mortgage broker that only three lenders offer shared ownership mortgages - Halifax, Nationwide and Woolwich.

Can you advise how we can find out who the other lenders are?

Any advice very much appreciated!

Many thanks
Saipan

Helga14

I brought my shared ownership place with Britannia, they only like people with equity in their property now though i think and buying over 50% of the property. Kent Reliance used to be the big one. I would definitely take the mortage brokers advice with caution. When I saw the one that the housing association got me to see he only tried to sell me products he got commission for (even though he was being paid by the HA for his advice) and didn't recommend the best product on the market for me. When I questioned him why he didn't like Britannia finally I got it out of him that he didn't get commission if i brought that product.

I think some people think shared ownership purchasers as all being financially inept.

Dan_1976

Nope Helga, he wants to earn a living and I am sure he was not breaking any rules.

Shared ownership is offered by more than 3 or so lenders, however some are better at it than others and some are more picky. In this market I imagine that some have priced themselves out. Leeds always had good deals but I would imagine that Nationwide would be the best.

robin_banks

Leeds, Kent Reliance, Safforn Waldon and Brittania building societies all offer shared owneership mortgages ATM. As a previous poster said, Leeds are oofering some decent deals.