mortgage renewal for shared ownership home?

kcmoon

Our fixed rate mortgage comes to an end in January, and I phoned up Nationwide (who we're with) and they said that we won't be able to renew a fixed rate with them. Here's how the conversation went:

- they asked me how much the value of the house was, and as I had actually gone onto their valuation calculator online, I could give them the figure they estimated which was 223000.

- He then explained that when we bought the house we put down a 5% deposit so that we could get a 95% mortgage. But now the house has devalued by 4% so that means that in fact, they are lending us more than 95% and therefore they can't give me a better deal other than the standard variable rate.

So now I'm not sure if there are other mortgage lenders out there who will lend more than 95% of the value of the house to people who are in a shared ownership scheme with a housing association.

Has anyone out there got a mortgage for a shared ownership deal? If so are you coming up for renewal and have you faced these problems too? Any ideas of what to do or do we have to just pay the standard variable rate?

I would go to a broker but actually we are so tight at the moment that we really don't have the extra money to pay for this service.

llh189

You shouldn't pay for a broker, some get their fees from the lender and not the customer.

try London and Country, they are whole of the market telephone based brokers , I have used them in the past and found them really good.

HTH

koexelek

Stick with Nationwide.

As lenders go, their standard variable rate is not too bad at all.

I think the only lender at the moment who will lend more than 95% on a shared ownership is Kent Reliance, and there deals won't even be as good as Nationwide standard variable.

robin_banks

Correct, it also depends ont he %ge of equity;

Brittania - 50%
Ecology Building Society - 50%

Halifax
Abbey National
Ipswich Building Society
Leeds Building Society

Min deposit 10%, all require min equity of 25%, Ipswich will not lend if a block of flats is over 5 storeys.

The fees vary massively BTW - Abbey is £2499.00, Leeds £405.00 though it can be as low as £70.00

Nationwide - 75% LTV

Some lenders i.e. Cambridge and Darlington Building Society will lend in thier local area, that may also be an option.