Shared Ownership remortgage

emaroid

Hi, I'm a new member to the forum, but I usually trawl through the threads searching out advice or freebies..

I need advice on remortgaging my 50% share which is currently fixed at 5.8% until December this year then switches to Leeds building society SVR of 5.49%. Leeds SVR is pants considering the base rate at the moment. I bought the 3 bed house in 2007 for £100k (50%) with a mortgage of 97% LTV from Leeds (2007 those were the days!).

I currently have some saving just below £7k, but my partner and I are expecting our first baby in Dec too, so I would like to hold on to this at the moment. Was just wondering what options I have as I would need to get an evaluation for a remortgage and I'd struggle to get a mortgage if I purchased an extra 25/50% because of the inevitable negative equity trap. Any ideas would be really appreciated or donations greatly accepted.
Thanks
em

emaroid

Oh come on someone must have some advice for me, not even a "SO mortgages are a scam"?

thanks
em

opinions4u

emaroid wrote: »

Hi, I'm a new member to the forum, but I usually trawl through the threads searching out advice or freebies.

Welcome.

I need advice on remortgaging my 50% share which is currently fixed at 5.8% until December this year then switches to Leeds building society SVR of 5.49%. Leeds SVR is pants considering the base rate at the moment. I bought the 3 bed house in 2007 for £100k (50%) with a mortgage of 97% LTV from Leeds (2007 those were the days!).

Your biggest problem is going to be equity. I'd guess the value of your property is probably 15%-20% lower than 2 years ago. Your mortgage debt won't have decreased much so you are probably in negative equity. Maximum remortgage out there seems to be around 85%. So if you're half of the property is worth £40k, the most you'll be able to remortgage for is £34k. If your debt is more than this you may well be struggling.

I think you're going to be stuck with whatever options Leeds offer.

wymondham

emaroid wrote: »

Oh come on someone must have some advice for me, not even a "SO mortgages are a scam"?

thanks
em

ok, since you asked ..... SO mortgages are a scam...

SelbyJay_2

The SVR is pretty rubbish, but it is less than your current fixed rate, so you should see your monthly payments decrease. You could then make regular overpayments (if Leeds will allow this) to clear some of the debt and increase your equity. This would make remortgaging easier as your LTV wont be as high.

I know the savings will come in mega handy when the little one arrives, but paying some or all of the savings off the mortgage could put you in a much stronger position to remortgage and get much lower monthly repayments. Could be worth investigating.