Shared Ownership Mortgage?

milliebear00001

Hello there

I am considering looking at a SO property n my town. It would be for a 50% share worth £81500. I have deposit of £25-30K and salary of £23000. I am looking very closely at the term and condtions attached to the SO deal so amnot looking for advice about the positives/negatives - rather, I want to get an idea of how easy it is likely to be to get a mortgage on SO. Have had conflcting advice thus far,with some saying it's nigh impossible, and others saying most high street lenders will do SO in some shape or form...so, over to the experts - how easy am I likely to find it, and would I just go to a usual whole of market broker to find one?

Loopylou90322

Ive had a shared ownership house in the past & got the mortgage approved for it no problem the bank was more than happy to approve for shared ownership, However from personal experience it is a very expensive way to buy a house & i would never consider doing it on this scheme ever again (Sold house) you have a good income with a good deposit to put down wouldnt it make more sense for you to do it yourself without the shared ownership scheme ? It all looks good on paper but when your living it you soon discover its not all its cracked up to be, Hope that this helps you - Goodluck

milliebear00001

Loopylou90322 wrote: »

Ive had a shared ownership house in the past & got the mortgage approved for it no problem the bank was more than happy to approve for shared ownership, However from personal experience it is a very expensive way to buy a house & i would never consider doing it on this scheme ever again (Sold house) you have a good income with a good deposit to put down wouldnt it make more sense for you to do it yourself without the shared ownership scheme ? It all looks good on paper but when your living it you soon discover its not all its cracked up to be, Hope that this helps you - Goodluck

My income and deposit wouldn't buy us a house anywhere near as good as this one. Can I ask what particular problems you experienced?

Loopylou90322

I thought the same as you the house was lovely & also brand new & knew without the shared ownership scheme wouldnt be able to afford it dont let this rule you into this,

The rent went sky high after the first year of living there i was paying more rent than mortgage even though they promise you subsidised rent this turned out to be untrue, Then there are the issues of repair they say the inside of the home is your responsblity & they will look after the outside this turned out to be untrue when the drains got blocked they wouldnt pay or arrange for it to be sorted out even though it was supposed to be there responsblity, I found myself out of pocket at everyturn whilst living there paying out for this paying out for that when i shouldnt have had too, I lived in that house for four years & found the whole scheme to be nothing more than a money pit, It caused nothing but stress & arguarments & the day i sold that house was the day i felt the weight of the world had been lifted off my shoulders - Be careful

brit1234

Don't rents go up by RPI, thats something like 4.5% at moment. Not good.

Buy normal not these scam properties.

milliebear00001

Loopylou90322 wrote: »

I thought the same as you the house was lovely & also brand new & knew without the shared ownership scheme wouldnt be able to afford it dont let this rule you into this,

The rent went sky high after the first year of living there i was paying more rent than mortgage even though they promise you subsidised rent this turned out to be untrue, Then there are the issues of repair they say the inside of the home is your responsblity & they will look after the outside this turned out to be untrue when the drains got blocked they wouldnt pay or arrange for it to be sorted out even though it was supposed to be there responsblity, I found myself out of pocket at everyturn whilst living there paying out for this paying out for that when i shouldnt have had too, I lived in that house for four years & found the whole scheme to be nothing more than a money pit, It caused nothing but stress & arguarments & the day i sold that house was the day i felt the weight of the world had been lifted off my shoulders - Be careful

Thanks for you advice. I think the schemes vary a lot, and the terms and conditions attached to the rent and service charges are something I plan to examine very carefully. The property itself is not new - the share is being sold by the person that bought it new about 8 years ago. So far, the rent has increased only at peppercorn increments. but of course, this is something I will check out thoroughly.

Loopylou90322

Good luck with whatever you decide to do whatever decision you make will be the right one for you, Keep me posted, Best wishes - Louise

Cardinal-Red

Loopylou90322 wrote: »

Good luck with whatever you decide to do whatever decision you make will be the right one for you, Keep me posted, Best wishes - Louise

If only this were true!!!

milliebear00001

Cardinal-Red wrote: »

If only this were true!!!

Would you care to elaborate?

Cardinal-Red

milliebear00001 wrote: »

Would you care to elaborate?

Certainly.

The bold bit in the quote says that whatever decision you make will be the right one for you. However this patently isn't true - if everybody's decision really was what was best for them, then there wouldn't be record repossessions, people staying in their homes only by virtue of handouts from the government etc.

People make mistakes (and not just in hindsight either) and I am often amazed at the attitudes of people about to make arguably the biggest purchase of their lives.

I realise it has nothing to do with you really and certainly wasn't a comment on your own situation - but the sad truth is people make decisions which are absolutely terrible and have enormous negative consequences.

milliebear00001

Cardinal-Red wrote: »

Certainly.

The bold bit in the quote says that whatever decision you make will be the right one for you. However this patently isn't true - if everybody's decision really was what was best for them, then there wouldn't be record repossessions, people staying in their homes only by virtue of handouts from the government etc.

People make mistakes (and not just in hindsight either) and I am often amazed at the attitudes of people about to make arguably the biggest purchase of their lives.

I realise it has nothing to do with you really and certainly wasn't a comment on your own situation - but the sad truth is people make decisions which are absolutely terrible and have enormous negative consequences.

Er - thanks for that then.