50 50 mortages

Mick_McL

Hi Folks,
does anyone have any info on 50 50/Shared ownership mortages, any tips pitfalls etc?

AndrewSmith

Yep,

50/50 mortgages work on the basis that you buy 50% of the property with the other 50% being retained by usually a Housing Association for which you pay rent.

As with any other mortgage you will normally need a deposit for your 50%, however it is possible to get a mortgage for the whole of your share. Very limited number of lenders that do it though (Leeds, Lambeth Building Society etc).

The main thing is to get your solicitor to go over the terms of the lease carefully to ensure that you have voulentary purchase rights in the future (called Staircasing) as opposed to mandatory purchase obligations (some organizations will insist that you buy a certain further share within a set time).

Actually arranging the mortgage works in much the same way as usual, based on income, credit history etc.

Hope this helps

Andy

Shortfatbird

When I got my first house (50/50 shared ownership), Nationwide were recommended by the housing association along with Abbey. I found the Nationwide much more helpful about shared ownership mortgages.

suki1964

Nationwide here as well. They are also happy to loan 100% of the share

davidcampbell

im looking into the possibility of shared ownership too....

abbey, nationwide, leeds and lambeth already mentioned.

anyone know of any others who accomodate this?

TIA
DC

regularsaver1

the housing assocation should recommend

the rent that you pay to the housing assocation will reduce how much you can borrow on a mortgage

I know when i orginally was going to apply, that it can take a while to get approval from housing assocation - they want loads of evidence under the sun

Good luck