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Shared Ownership FTB and debt?
gingerbuffoon
Posts: 4 Newbie
Hi,
Currently I have between 10-12k debt (nearly 600pcm-13-24months left) in existing loans from my soon to be dissolved marriage. I also pay £400 rent pcm plus bills. I am looking at a shared ownership property with 30% @ 47.5k. My mother can give me the 4750 deposit. Do you think the exisiting debt could be put on to the mortgage? If i were to pay 60k mortgage with no loan payments at 4.5% and remaining rent and service charges i believe it would save me £300-400pcm?
Although I would pay more in the long run it would be a sensible way of getting onto the housing ladder and having less outgoings on a monthly basis to allow overpayment etc
Anyone had experience of this happening or being refused???
Thanks in advance
Currently I have between 10-12k debt (nearly 600pcm-13-24months left) in existing loans from my soon to be dissolved marriage. I also pay £400 rent pcm plus bills. I am looking at a shared ownership property with 30% @ 47.5k. My mother can give me the 4750 deposit. Do you think the exisiting debt could be put on to the mortgage? If i were to pay 60k mortgage with no loan payments at 4.5% and remaining rent and service charges i believe it would save me £300-400pcm?
Although I would pay more in the long run it would be a sensible way of getting onto the housing ladder and having less outgoings on a monthly basis to allow overpayment etc
Anyone had experience of this happening or being refused???
Thanks in advance
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Comments
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I'm sure someone more financially savvy will come along and tell you the right thing but I'm pretty sure you wouldn't be able to put the loan onto your SO mortgage.
Be cautious about the guidance from the housing associations who keep claiming you can get a 5% deposit mortgage on their properties. SO mortgages are difficult to get and we were only able to do it with a 25% deposit (We needed £16500), as were many others we know who also bought through shared ownership.Overdrafts transferred to MBNA £953.40/£4279.80 Car insurance (on CC) £461.98/£751.98 :mad: Bank of mum and dad £1500/£5000Total debt repaid £2915.38/£10,031.78 (29%):T Owed [STRIKE]£10,031.78[/STRIKE][STRIKE] £7400[/STRIKE] £7116.40 Pay off as much as you can in 2011 challenge £1127.60/£40000 -
No. This would leave you owing £55k on a £47.5k share of property. It's a complete non-starter.gingerbuffoon wrote: »Currently I have between 10-12k debt (nearly 600pcm-13-24months left) in existing loans from my soon to be dissolved marriage. I also pay £400 rent pcm plus bills. I am looking at a shared ownership property with 30% @ 47.5k. My mother can give me the 4750 deposit. Do you think the exisiting debt could be put on to the mortgage?
I would also be very cautious about shared ownership. Renting can have advatnages.0 -
Go onto the Debt Free Wannabee forums for help in paying off your debt, and then saving up a deposit.0
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Pay your debts off first and save a deposit. Buying in debt with little deposit and the high likelihood of negative equity in the crash sounds suicide to me.
Personally I wouldn't touch shared ownership with a barge pole and neither will the banks it seems increasingly now.:exclamatiScams - Shared Equity, Shared Ownership, Newbuy, Firstbuy and Help to Buy.
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