Shared-Ownership Mortage Provider

matthew_t_2

Hi all,


I'm looking into buying a 40%(£32,000) shared ownership property...

The issue I'm finding is that with existing loan commitments, I'm struggling to find a mortgage provider.

What I'm looking for:-
A mortgage provider for shared ownership property, who will also offer an unsecured loan, so that I can cancel out existing debts and have one monthly outgoing for mortgage/[new]loan.

If you could offer any advice, it would be greatfully received.

autumnstar

Hi Matthew, I'm new here (1st post) but I saw yours and thought I'd reply. I own part of a Shared Ownership flat and I know that Abbey and Halifax will mortgage those properites. However, I do not know if they will offer an unsecured loan as I put a deposit down when I bought but if you call them they should be able to tell you.

One thing to bear in mind with Shared Ownership is that is can work out to be expensive what with the rent, service charge, etc and then all the general utilities bills (water is sometimes included in the service charge - but check), insurance, council tax etc. If you are planning to buy from someone who already resides in the flat, I'd ask them for a break down of how much you can expect to pay each month for these things. If it's a brand new property, it's pretty easy to work out but if you need any help, holler.

Also, you might want to check that the Housing Association you are buying with are good - ie. they deliver the yearly service charge accounts when they should, do timely repairs of the communal areas, the cleaners/gardeners do what you pay for, that the neighbours aren't noisy (i got sold my new flat even though the HA had previously had numerous complaints about my neighbours from other residents in the building) etc.

Don't let any of this put you off - I'm very glad I went ahead with my purchase 2 years ago.

Good luck
Autumn

matthew_t_2

Thanks for the reply.:j

I've tried with Halifax (current bank), but had no luck.

I'm starting to get a little down-heartened, because I've laid down all the costs and done my reserach and could scrape-by with myy existing terms (I feel!).

If I were able to take a loan out on top, I would be able to make higher payments quite easily, but this seems to be my stumbling block.

Never give up as they say...!

Leon_W

There are very few lenders who will entertain a shared ownership mortgage to start with. None of them top this up with an unsecured loan.

Unfortunately matthew_t you will have to reduce your existing loans to such a point that a mortgage+rent becomes viable.

The last ditch solution is to consolidate your loans over a longer period of time. This helps with lenders that use an affordability calculation (like Halifax) but is really quite a bad idea as you are saddled with the debt for longer and end up paying vastly more interest.

Sorry if that's not what you wanted to hear but best of luck anyway.

ctabuk

https://www.housingcorp.gov.uk Look for Homebuy Agents and get the ball rolling - good luck Cheers David

izoomzoom

Little bit off the main subject here, but

have you been offered a place ? -

if not, you have time to seriously start reducing those debts. It took us 2 years to finally get offered the SO we were happy with

if yes - SO is notoriously slow in completing. We started in August and it looks like our first mortgage payment will be December. We pushed everything every single step of the way and it still took us 3+ months, so you could probably afford to stall a week here and there, if the HA haven't stipluated a timeframe.

However, if your debts can't seriously be reduced in the next few months, then my advise wont be of any help. Sorry.