Shared Ownership - do 100% morgages exist

Gwedo

Hi All

We have just been approved on the shared ownership scheme.

The next step is a morgage and this is were we are slightly lost! do 100% morgages still exist? we dont have a large deposit to put down and we were hopeing the shared owenship option was a way on the property lader.

We will need a morgage of around 68,000, no matter where i look on banks websites there is never any mention of the deposit amounts. We are both employed and a total income of around 43,000

Can someone help, does anyone know a minmum deposit? any advice would be appreciated!

Thanks

feeta

Hi Gwedo,

I'm not a broker so I couldn't tell you for definate but I'm pretty sure 100% mortgages don't exist at the moment. As far as I know 90% is the highest lenders will offer currently.

If that was the case, 10% of the share you're buying (£68,000) would be £6,800 - do you have that much saved you could use as a deposit? Don't forget you'll also need money for solicitors fees, moving services etc etc. - There's a thread in the "House Buying, Renting & Selling" forum with some useful moving costs.

Someone will no doubt be along to give you a better idea soon.

Good luck!

herbiesjp

You might get away with a 5% desposit (of your share ) with some lenders, for Shared Ownership properties

Mini_Bear

With a joint income of 43k and no deposit you really shouldnt be buying a home you dont seem ready. We are in this mess because too few ppl wanted to save and 100% mortgages were created for them. Being able to save money is a skill which will see you manage your finances better and prove to the bank that you are a good customer.
Shared ownership is a scheme (scam) designed to keep house prices high, if all us FTBs voted with our feet and refused to buy at these price levels house prices would continue to drop to affordable levels and we would all be better off.

CamillaInLondon

Im in the process of buying a part-buy-part-rent flat at the moment. The mortgage i have is for 85% of the share i am buying. Therefore the smaller the share you take the less the deposit you need. However a good mortgage advisor will try to get you to take the largest share you can. (Saving on paying rent and as the house prices are likely to go up (not sure when) when you come to staircasing (increasing your % ownership) the cost will increase)

The best thing i can suggest would be to find yourself a mortgage adviser and discuss your options with him, the first meeting is usually obligation free.

I would highly advise to get a deposit and as much as you can because from what i have seen the larger your deposit is the better your rate on the mortgage will be.

Also have you had an affordibility assesment with the housing associations financial advisor?

As an idea for moving costs on a property in the region of £150,000 i am paying around £2000 for fees (mortgage and solicitors) You will also need to consider cost of removal men, new furniture and all the other necessities of living esp if you are first time buyers. (I went and bought standard kitchen utensils and spent well over £100 on them alone)

mic200202

Mini_Bear wrote: »

We are in this mess because too few ppl wanted to save and 100% mortgages were created for them.

I take it you're referring to the current economic state? That was I think
a bit more to do with global economic policy rather than any lending issues in the UK. UK lending is not the cause of our current economic woes.


[/quote]Shared ownership is a scheme (scam) designed to keep house prices high, [/quote]

Dont see the link between Shared Ownership and house prices? With Shared ownership there are 2 independent surveys - one for the lender the other for the scheme provider to establish a market value.By the time you get round to working out that house prices have not fallen any further, they will be on the way up again.

devon_guy

How many times do I have to keep saying this? Shared Ownership is NOT a scam. The property requires 2 valuations, one from the housing associations INDEPENDENT valuer, the other from your mortgage company. Please enlighten me how this is a scam and keeps house prices high? How many people that buy properties have 2 valuations done???

RoxieW

I'm not even going to bother repeating myself on this subject - just to the OP - when we got our 50% shared ownership is was classed as 50% LTV so we didnt have to pay a higher lending charge. This was through kent reliance building society who i would wholeheartedly recommend. HTH

robin_banks

Shared ownership properties are massively overpriced.

There is a scheme in West London sold by Shepherds Bush Housing Association where only 5 of the 129 shared ownership flats have been reserved - note not even sold, to build £350,000 full market value flats (not that they are worth this) is bonkers.

This is threatening the financial viability of said HA.

The crux of the matter is the HA's cannot budge on the selling price , as most s/o properties are new build they are by definition overpriced.

Any shortfall in the valuation will therefore need to be made by the borrower thereby putting them in negative equity form day one. They are also a nightmare to sell.

Regarding staircasing evidence from the Housing Corporation has indicated less than 3% of all shared ownership buyers have been able to afford to stairgate.

I can name several shared ownership developments that have been mothballed and several more will follow.

You can expect some HA's going to wall as a result of thse hairbrained schemes.

robin_banks

If you still want to go ahead with this mad scheme Kent Reliance used to do 100% mortgages, though I doubt they still do.

beecher

mic200202 wrote: »

I take it you're referring to the current economic state? That was I think
a bit more to do with global economic policy rather than any lending issues in the UK. UK lending is not the cause of our current economic woes.

.

The UK housing market has been a pyramid scheme waiting to collapse for years. Gordon Brown may like to think it is because of 'world problems' but 6x salary and NR Together mortgages weren't ever going to be maintained for long.