Any advice on which mortgage lenders are best for Shared Ownership properties?

Cortes

Hey Guys

Hope that you can help.....me and my other half have been given the opportunity of purchasing a part share of a Housing Association property and we could do with some advice on the best deals out there. We have been told that only around a dozen mortgage companies lend on shared ownership but we have only managed to get quotes from the Halifax and Natonwide.

Any help and suggestions would be much appreciated.

Ta

Addicted2Chocolate

when we were shared ownership we had mortgages with Halifax and Abbey....
proud to say we are now 100% owners as staricased from 50% after 4 years. good luck with it.

MortgageMamma

Abbey, Halifax, Nationwide, Leeds Building Society, Woolwich, Alliance and Leciester, Beverley BS, Britannia BS, Cambridge BS, Darlington BS, Dunfermline BS, Holmesdale BS, Ipswich BS, Kent Reliance BS, Newbury BS, Penrith BS, Preferred, Progressive BS, Shepshed BS, trafalgar homeloans.

I dont profess to knwo these off the top of my head, I went onto my sourcing system and got them, there may well be more.

Cortes

MortgageMamma wrote:

Abbey, Halifax, Nationwide, Leeds Building Society, Woolwich, Alliance and Leciester, Beverley BS, Britannia BS, Cambridge BS, Darlington BS, Dunfermline BS, Holmesdale BS, Ipswich BS, Kent Reliance BS, Newbury BS, Penrith BS, Preferred, Progressive BS, Shepshed BS, trafalgar homeloans.

I dont profess to knwo these off the top of my head, I went onto my sourcing system and got them, there may well be more.

Thanks heaps Mortgage Mamma! A very helpful list and in the end the Nationwide look like the best for us....no MIG and a pretty damn fine rate fixed for 3 years.

Thanks for your time, much appreciated! :j

MortgageMamma

No problem glad to have been able to help. Nationwide will be putting their rates up on 1st September so be sure to get in there quickly. See the following thread for more details

http://forums.moneysavingexpert.com/showthread.html?t=242697

Flomay_2

My partner and I are buying a 30% share at £49500 of a flat in Brighton. I was trying to do everything quickly (trying to plan our (budget) wedding too so time and energy is a factor!) and I made an enquiry through a website called Graduate Network who specialise in this area and arrange mortgages for you. They gave me the choice of 4 Woolwich mortgages and 1 leeds bs mortgage. I gave them my details, they did a credit check and now we have an AiP. We don't have a deposit and the mortgage we are thinking of going with is a Woolwich 3 yr fixed at 5.69%. Does this sound like a good mortgage?

We have just signed up with a solicitor so i'm keen to get everything started, but am just a bit concerned that i should really go through a financial adviser and do a fuller check for other possible lenders? Any thoughts?

One other question. Once everything is sorted and money is transferred. Does the mortgage money go into my account and then I transfer to the seller or does it go directly from lender to seller? We have an AiP for 50000, but mortgage is only 49500, wondering if we can keep the 50000 mortgage so we can use the extra 500 for costs.

Any advice gratefully received.

Thanks for reading.

izoomzoom

Sorry I have just done a quite search and it states that the LTV is 95% but you state you do not have a deposit ?

Are you sure this product is suitable for SO ?

Oh and wouldn't it be wonderful if the transferred the money to your account ... don't think so.

MortgageMamma

Who are graduate network? if they are giving mortgage advice they should be qualified mortgage brokers. if they are qualified and regulated by the financial services authority you should be able to find them here www.fsa.gov.uk/register

Its always better to get a second opinion and compare your options, but be sure to advise whoever you instruct to investigate your options that you do not want to be credit checked or have an agreement in principle carried out until they have presented to mortgage to you and you have decided to proceed - to many credit checks can have a negative impact on your credit score

kind regards

MM

herbiesjp

In answer to your points:

Most S/O lenders will want a 5% deposit of teh share you are buying - so if your share is £49500, you will have to put a depsoit of £2475.

There are a handful of lenders that do not need the deposit on S/O and will 100% of the share but I cannot remember off the top of my head is Woolwich is one of them - but I don't think so.

THe money gets sent via the solicitors from the lender to the vendor so you do not get the money in your account.

It may well be worth while getting a second opinion here, just to make sure you are being given the correct advice.

HTH

MortgageMamma

Trafalgar Homeloans are one of the 100% shared ownership lenders, but I do not know of any mroe as SO is not something I usually get involved in. Some of their products have early repayment overhang so its best to take advice before considering applying to them. (this is not advice, the lender could be totally unsuitable for you, so please think carefully before exploring this option by yourself)

Like Herbie, I've always thought Woolwich required a cash deposit on SO. Perhaps the adviser who has lots of experience in SO will be along later to comment further...

herbiesjp

MortgageMamma wrote:

Trafalgar Homeloans are one of the 100% shared ownership lenders, but I do not know of any mroe as SO is not something I usually get involved in. Some of their products have early repayment overhang so its best to take advice before considering applying to them. (this is not advice, the lender could be totally unsuitable for you, so please think carefully before exploring this option by yourself)

Like Herbie, I've always thought Woolwich required a cash deposit on SO. Perhaps the adviser who has lots of experience in SO will be along later to comment further...

Indeed I would look at other mainstream lenders first, that would potentially offer better deals than Trafalgar depending on your circumstances