Shared Ownership

Junior_Doc

I'm a first time buyer, and a doctor and have been accepted for a shared ownership scheme in London (New Build Home Buy), which I hope will enable me to start on the property ladder.
Just two weeks ago I had been told by an IFA that there were 95% LTV mortgages available for people in my situation but now I can only find 90% products, and many of these specifically exclude first time buyers, shared ownership and/or new build flats.
Has anyone any tips on finding a 95% mortgage in the current climate?
Is a parental guarantee helpful? Can this be temporary?

Tom_Kelly

I raised capital on my home to lend to my son so he could get an 80% mortgage at a good rate. I have substantial equity and so the rate on the extra 15% he needed (he had 5% cash plus enough for costs etc) was also very low. He effectively had a loan of 95% but only paying the interest rates that were applicable to an 80% ltv.

I am sure more people would do this if they knew that they could. I can put you in touch with the mortgage broker (done by telephone and post) if you would like me to.

feisty1

Junior_Doc wrote: »

Just two weeks ago I had been told by an IFA that there were 95% quote]

Why don't you give him a call and ask him to find the product he was talking about?

mummytofour

Why don't you sit tight and save save save the market is going down and IMHO shared ownership is a load of old balls ( I have the t-shirt). If you are a dr then in no time at all you will be able to afford a place not overly inflated by the govs ego, a place that is yours with no S/O ties.

Errata

Speak to your professional association - the BMA, BMA Services has mortgage advisors.

Tiddler_2

Unfortunately we have seen this year that mortgage companies can (& do) change their criteria very regularly (particularly if they are in a minority, so that they don't get inundated & expose themselves to too much risk)

I have had quite a few shared ownership enquiries recently and the most I have been able to get for customers is 90% of their share.

When you then throw in the fact that the property is a new build flat, then you are going to be really struggling.

As Tom suggests if you have a kind parent that is prepared to remortgage their own property to get you the larger deposit you need - then that is a fantastic solution, the alternative is too look for a shared equity solution as you don't have to find a deposit on your share with these.

essexsi_2

Hi Junior doc.
I agree with everything that has been said so far. The shared ownership properties are overvalued to start with, even before you start figuring in rent and service charges etc.
If you do have to go the Housing Association assistance route then find out if they do shared equity schemes. I was lucky enough to get on the shared equity scheme for key workers, such as yourself. This is a completely different arrangement where the Housing Associations give you a loan in return for a share of the equity in your property. You don't pay rent or any interest on the loan and it does not have to be paid back until you sell the property. Also of benefit was the fact that many lenders, in my case Nationwide, treat the equity loan as your own money and a nice big deposit. Which brings you below the 90% LTV criteria and qualifies you for better deals.

At least this was all true when I applied about 3 years ago!!

All the best Si

devon_guy

It really winds me up when people say S/O properties are overpriced. They aren't. The housing associations don't set the prices they are set by an independent valuer to ensure the pricing is fair.

essexsi_2

devon guy,

when I was looking in the same block new build block, mixed S/O and normal ownership, there was a £12,500 'premium' on the S/O!!! Needless to say I didn't take them up, but others did. In this case, yes they were overpriced and then some!!

cheers Si