Shared Ownership Mortgage - am I missing something?

Petree

Help me moneysavers!

Can someone check my numbers make sense, as they don't to me!

I'm looking at a shared ownership house (i'll make up the numbers for ease) but can't understand the working as they just don't stack up.

Total House Value = 200k
50% Buyers Share = 100K

Leeds Building society offer a 90% LTV shared ownership mortgage which seems to suggest I would need £10k (10% of the £100k needed)

That I get, but the plot seems to thicken as next to the info on the 90% LTV it states '90% of borrower share available' so does this mean;

You can get a mortgage from Leeds for the 90K, which is 90% of the borrowers share, but on that 90k you would only get a 90% LTV so would also need to supply a deposit of 9K.

So the total cash outlay would be
10K for the difference between the 90% of borrowers share and the whole.
9K for the deposit on the mortgage
Link = http://www.leedsbuildingsociety.co.uk/mortgages/ratesfirst.html

Meaning I need 19K? :eek: which means I might as well save 1k more and use it as a 10% on a 200K mortgage anyway?

If thats the case, are there any 90% mortgages for S/O out there that do 100% of the borrowers share?

Thanks,

Paul_the_Painter

My reading of the info is that they are 2 different criteria you have to meet.

90% of the full value of the house - so £180,000
or 90% of your share - so 90% of £100,000 = £90,000
whichever is lower

so you can borrow £90,000 and need a £10,000 deposit


This makes more sense when you look at the other mortgages available, and the fact that you can buy as much as you like of shared ownership properties.

They have one deal that is 75% LTV and 95% of borrowers share.

If you wanted to buy 90% of your house, valued at £200,000 you would need £180,000. Leeds would lend you the lower of 75% of the full value (£150,000) or 95% of your share (£171,000).

You therefore would need a deposit of £30,000 - not the £9,000 a 95% deal would suggest would be enough.

Probably