Switch from special share equity mortgage to normal

TheLearner2008

Hi,

Currently I have a mortgage with Halifax which is a special share equity mortgage. The builder has 20% equity. I have 5 years to pay it off.

If I paid back the equity to the builder in say 2 years can I switch my mortgage to a normal one? The normal mortgages have better rates or will it always be a share equity mortgage?

dimbo61

If you can repay the 20% equity you owe the builder you would then have a much bigger share of the property that you own!
Did you only put down a 5/10% deposit?
Now the sooner you can build up your equity in the property then the sooner you can get a better mortgage deal IF you are not in a long term fix !
75% LTV gets much better deals than 95/90% LTV

TheLearner2008

dimbo61 wrote: »

If you can repay the 20% equity you owe the builder you would then have a much bigger share of the property that you own!
Did you only put down a 5/10% deposit?
Now the sooner you can build up your equity in the property then the sooner you can get a better mortgage deal IF you are not in a long term fix !
75% LTV gets much better deals than 95/90% LTV

Hi there. I paid 5%, the builder paid 20% and the bank paid 75%.

So because 20% came from a third party and not myself - the bank is always going to see me has having a 95% LTV, correct - even though its share equity NOT shared ownership?