Best time to get mortgage - Shared Ownership

nicgarr · 8 May 2009 at 7:04PM

We are in a shared ownership scheme in scotland where we own 25% of our home and rent the other part from a housing association.
We want to buy the house outright via a mortgage but are not sure if now is the best time to take out a mortgage or wait till next year. We'd rather wait a year but will the rates go up by then?
Nic

Cannon_Fodder · 8 May 2009 at 10:43PM

The BoE have announced another £50Bn of QE (money printing) by the end of June, so its likely rates will remain the same at least until then.

Depending on whether any green shoots are appearing, will determine the continuation, or not, of QE.

As the BoE don't know if the QE will work or not, there may or may not be inflation resulting from the extra money pumped into the system.

There seems to be widespread 'expectation' of some future inflation, which will lead to higher interest rates, although it could take between several months and perhaps two years, to appear.

Keep an eye on http://www.bankofengland.co.uk/index.htm it shows you the date of the next decision...as long as they leave it alone, hold your breath and only bite the bullet when you need to.

Obviously, the longer you wait, the higher the deposit you can save and the better rate/LTV situation you will be in, too.

brit1234 · 9 May 2009 at 1:44AM

Far better to buy the rest of the property when it devalues another 15-20% next year.

devon_guy · 9 May 2009 at 9:20PM

And you know 100% that the property will devalue that much do you brit1234?

shellnapier · 9 May 2009 at 10:08PM

why r every1 so agasint shard buying?

devon_guy · 10 May 2009 at 12:00PM

I think, from reading these posts, the majority of people get it confused with and use the same term to mean shared equity which is a completely different thing and tar both of them with the same brush. If you want a non-biased experience of someone going through Shared Ownership as opposed to shared equity, please PM me.