Shared Ownership - do 100% morgages exist

Cozworth806

But you have to live somewhere and if rents increase then it makes sense to get a mortgage where the rates are capped for as long as possible.

Met_Bobby

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 banks can't lend due to their appalling policies in the past of lending 95%- 125% plus self certification and sub prime etc. The fact that other banks around the world did the same is no excuse. Past UK lending policy is the cause of UK problems and the failure to restart lending.

poppy10_2

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.

Yes, it was all the fault of those nasty yanks and their crazy lending practices. We never had 125% mortgages, 6x LTV mortgages, and BTL mortgages for anyone with a pulse over here. :rolleyes:

0james0

The housing market was simply the first thing affected by the economic down turn, not the cause.

100% mortgages barley exist, only in the form of vendor gifted deposits. Kind of the same as it still doesn't involve you putting your hand in your wallet and putting a deposit down.

These however cannot be accepted with a shared ownership.

5% of your share may have a chance of being reluctantly accepted by the lender.

How can SO's be a scam? now a days they have spot on values (have to or won't sell), there may be some exceptions but you only know about them as they are still not sold! Often still cheaper than renting and you still get 50% equity growth when you sell. Not much now, but in the grand scheme of things, it won't be long until they make money again.

inglesito

I am in the process of buying a shared ownership property in London. Somehow I managed to find a window where there was one lender prepared to lend 100% at the beginning of January (Manchester Building Society), and although the product was withdrawn a few days later, my application was in the pipeline so they are now proceeding with the valuation. I believe that it's now impossible to find a 100% mortgage even for SO.

I know it's not the best deal in the world (SVR+0.25 for 5 years, then reverts to SVR, currently at 5.95%), but it was the only product available to me for the foreseeable future. And comparing that to shelling out £470 a month in a shared flat that does nothing but contribute to my landlord's burgeoning property empire, I decided to take the plunge. As it stands, my mortgage will be about £330, the rent is £192 and the various service charges and insurance add about another £120 - grand total about £640. £170 extra to have my own place and to be putting away at least something in equity isn't such a bad idea.

I should add that as a single person living in London and commuting to the centre, saving for a bigger deposit would take forever. I don't have a car or an extravagant lifestyle, but I allow myself treats (occasional gigs, budget holidays and tubs of Ben and Jerry's ice cream) because you have to enjoy life too. And there is also the advantage of having a brand new flat, that I can really turn into a home.

By the way, shared ownership flats are independently revalued every 3 months. I checked on Zoopla and the estimated value on there was almost exactly the same as the full market value of my flat.

I suppose it all depends on whether the desire to create a home to live in outweighs the money it costs to get that dream. For me it does :-)

moomin82

Hi inglesito
I was just looking for info about SO as I am trying to save for a SO flat. How is it going with your flat? I am just interested to know.

I'm also a single working professional and I would like to get my own place within the next 3-5 years. I am saving for one of these new builds.