Equity share

JHyde16

Hi,

I have found a website equityshare.com and am wondering if you know anything about it and how trustworthy it is?

We are struggling to get on the housing ladder and are thinking this may be a good option for us as we have a £9000 deposit which is enough for the value of a house we have seen.

Scared of getting caught out and losing the deposit and wanted some advice if anyone has used them and found them reliable?

Thanks

Jodie

Conrad

You need to go to the effort of posting a link or some text from thier website if you want some help.

brit1234

Hi I would avoid any thing like this including shared equity/ownership properties.

Don't be in a rush to buy now as prices are falling fast and set to fall all next year (Capital Economics, OBR).

Save and enjoy the falls in price. Buying now you will loose your £9,000 deposit and likely ngo negative equity making future remortgages difficult.

Shimrod

JHyde16 wrote: »

Scared of getting caught out and losing the deposit and wanted some advice if anyone has used them and found them reliable?

Thanks

Jodie

Can't comment on the company, but some general comments:

The business seems to be based on the assumption that property prices always go up and you will also be able to remortgage. The last couple of years have proven that isn't the case.
http://www.equityshare.com/site.aspx?i=pg1

There is no indication of what happens after the 5 years if you can't remortgage to pay off the cash

I would never trust a website that doesn't have a postal address.

You still have to qualify for a 75% mortgage anyway.

The claim below (from the link above) is at best dubious. They obviously have a crystal balls, so it might be worth asking them for six numbers for tonight's lottery at the same time.
" WE CAN PROVE TO YOU THAT IN 5 YEARS' TIME, YOU WILL BE FINANCIALLY BETTER OFF WITH EQUITYSHARE."

JHyde16

Thanks for all your replies. :-)
We are in a situation that our rented house is falling to pieces around our ears with damp and structural damage and with a baby due in May we desparately want out! The rental prices in our area have rocketed which means if we move to another rental we will not be able to save for mortgage - catch 22!
Just trying to establish all possible options open to us and hence why our rush to try and get on housing ladder. Its annoying as our repayments for the amount we need to borrow will only be the same as our current rent so easily affordable.

BadgerFace_2

You pay rent on the money you have borrowed off them, the example I just did showed a monthly rent of £250 on their investment of £35000 and they still own 20% of your house. This is a brilliant deal, not for you, but for them.

The other problems you have are-
It is payable in 5 years time. What if you do not have sufficient equity in the property to re-mortgage for that amount then?
Many banks will not agree to you paying a return under a 'shared equity' mortgage, there are others, but the interest rate are higher.
Many banks will not agree to anyone other than a builder or government scheme having an interest in their (your) house.