First Time Buyer - Shared Home Ownership HELP!

berniebeyer

I am a first time buyer, and am in the market for a shared home ownership property.

The property is worth £182,500 and we are buying a 35% (£63,875) share.

We have been told this morning, that ALL banks have changed their lending policy from a 10% deposit (£6,387) to a 20% (£12,774) mortgage. Apparantely this change has only happened within the last week!

Can anyone confirm this?, or is there some companys out there prepared to lend us the money if we only have a 10% deposit?

Any help appreciated

Thanks

Bernie

SelbyJay_2

Who told you this? It seems doubtfull.

Halifax do SO mortgages so speak with them. Only a few lenders do this type of mortgage.

berniebeyer

The person who told us, is the financial advisor, who is working with the company we are buying the house off.

Me and my boyfriend were beginning to panic a bit. But we'll definately give Halifax a try.

Thanks again

berniebeyer

Ok guys,

I've been having a look around, and found that RBS, Halifax, Natwest and HSBC all offer 10% depost mortgages.

My next question is, do these banks offer the above said mortgages to customers who are taking the shared home ownership route?

Thanks

Bernie

devon_guy

The only one out of those is Halifax that do SO. They will most likely want a 15% deposit though. Leeds one of the biggest SO providers have doubled their deposit to 20% and only from last week as well.

I'd deffo try Halifax, that's who my mortgage is with for my SO.

SelbyJay_2

Halifax are doing 90% LTV, i would hope this would inc SO mortgages.

Janec2

Hello

We are in the process of trying to buy a S/O house too.
The asking price £179950 and we are buying 50 percent.

We have had a mortgage guarantee from Barclays (who use The Woolwich) and they are doing S/O mortgages with a 10 percent deposit.

Just had survey done though and the valuation came out at only £150000. We are buying from a Housing association and I have to say they dont seem to know what they are doing !! Its took much longer to sort the mortgage than its should because the HA dont send the documents the bank is asking for :mad:

We need to get the asking price lowered now. Fingers crossed.

poppy10_2

Don't pay any more than the valuation - ideally try to back out of the whole deal.

Jewell_2

Me and my boyfriend completed a shared ownership buy at the end of March. We bought 50% and got our mortgage with the Halifax who the house was advertised with. We were one of the last people in the country to get a mortgage with a 5% deposit apparantly.

The housing association side were useless though, despite the fact that we dragged out the sale so we could finish our tenancy they still nearly messed up our entire move by not getting anything done until us/our solicitors/the sellers solicitors and the Halifax were ringing them every day :rolleyes: