Banks doing shared equity?

stevenh78

Hi, I'm currently looking to buy a property from Persimmons on a shared equity scheme where they pay 15% and I pay 10% deposit.
Do you know which banks would lend on these terms? I phoned HSBC, ING and a few others and they don't do shared equity...

herbiesjp

Lenders who agree these are few and far between.

Many different developer SE deals have different criteria - and as a consequence lenders have different criteria to try to agree them.

You don't say which "others" you have approached, but I would suggest getting a whole of market adviser to search for you to make sure you find one that is happy with the developer scheme you are looking at.

AMILLIONDOLLARS

Just be careful doing a shared equity buy with the major house-builders, their contracts are usually filled with a lot more pitfalls. I would urge you to choose your own solicitors and not one recommended by the builders, for when the S**t hits the fan, you'll find that they are not really working for you! Why not go with a Housing Association these are normally safer bets.

AMD

rfowler

Natwest or RBS do

stevenh78

My financial advisor originally got me a deal with Woolwich which gave pretty good rates, but while trying to finalise the deal they have just came back saying they've changed their terms and require a larger deposit from me now so we now have to look to see what else is available. From what my advisor says, Nationwide is pretty much all that's left amd the mortgage rate is slightly higher but main difference is after the 2 year period, the Nationwide product switches to SVR which is a lot higher than the Woolwich offering...

stevenh78

Well Woolwich got back to my broker and said I now need 25% deposit of the 85% equity so it is almost double what I was originally planning to put in.
In the end I phoned Halifax directly and they offered me a similar rate and only require me to put 10% in total in so seems to be a good deal... just hope it all goes through fine now...