Help and advice on Mortgages/buying a house

CloudCuckooLand

I'm taking the time to try and answer your questions. I call that fairly friendly...

pjgoober wrote: »

Obviously I've not checked Experian, but I'd be suprised if they found out about a loan...

Many threads along the lines of "my lender declined my application, but I'd checked my credit rating..."

"Ah, but how many credit agencies..?"

"Oh, just the one...".

"That lender uses the other one..."


Its good if you have no reasons to suspect a problem on your file, but equally there are plenty of threads where people have a panic of how to get an incorrectly recorded entry on their file removed.

Checking your rating weeks, preferably months, before you plan to apply for a mortgage is a good idea, as it can take months for any problems (even if total incorrectly recorded) to disappear.

adwat

pjgoober wrote: »

And if we did want to live there for 30 years?

Read up on the terms and conditions very carefully - you may find that the shared equity partner has over-riding rights on the lien of the property compared to you even though they are the minority stakeholder. If I'm being honest, I wouldn't touch it with a bargepole - read some of those shared equity stories I posted earlier. At the end of the day you're the one who's going to have to decide on whether it's the best thing to do, but the bulk of replies to your question have been negative so far. Is it "too good to be true?" - you know what I think, but best of luck with whatever you decide.

adwat

P.S. I'm trying to be helpful (honest!), it sounds almost as if you want people to affirm that it's a good thing, thereby backing up what you want to do. You're not getting that affirmation - maybe this ought to give you pause for thought at the very least?

beecher2

I wouldn't touch it personally as I've read far too many horror stories on here. I'd advise keeping saving rather than jumping into this.

pjgoober

dimbo61 wrote: »

Others have talked about shared equity and the problems of buying 75% of a property!
You need to look at what Barratt want ? Do you have to pay them back after say 10years? or give 25% of the sale price when you sell? any interest payable to Barratt?
As for the property itself ! have you got 2 cars therefore 2 parking spaces or better still a garage

I would post the details of the Barratt scheme, but I can't post links. someone posted it on the previous page though, I think.

Basically, they lend you 20% interest free for 10 years, so you only need a 5% mortgage. at the end of 10 years you either have to pay for 25% of the house outright or sell and only keep 75% of the proceeds.

So you are taking on the risk, in exchange for getting on the property ladder.

pjgoober

adwat wrote: »

P.S. I'm trying to be helpful (honest!), it sounds almost as if you want people to affirm that it's a good thing, thereby backing up what you want to do. You're not getting that affirmation - maybe this ought to give you pause for thought at the very least?

I'm not really looking for affirmation or warning. I'm really looking for peoples advice on what the shared equity thing means in real terms.

If I'm not absolutely convinced this is the right thing for us to be doing, I will happily walk away and keep saving towards a bigger deposit. I'm not in any massive rush.

It appears on the surface to be a good deal, which is why I'm considering it at all. I'm really just trying to understand what might be under the surface waiting to catch us out.

shortchanged_2

pjgoober wrote: »

I'm not really looking for affirmation or warning. I'm really looking for peoples advice on what the shared equity thing means in real terms.

If I'm not absolutely convinced this is the right thing for us to be doing, I will happily walk away and keep saving towards a bigger deposit. I'm not in any massive rush.

It appears on the surface to be a good deal, which is why I'm considering it at all. I'm really just trying to understand what might be under the surface waiting to catch us out.

Very few deals are as good as they appear at first. Examine all the paperwork throughly as there may be a few unexpected shocks in there.

adwat

pjgoober wrote: »

I'm not really looking for affirmation or warning. I'm really looking for peoples advice on what the shared equity thing means in real terms.

If I'm not absolutely convinced this is the right thing for us to be doing, I will happily walk away and keep saving towards a bigger deposit. I'm not in any massive rush.

It appears on the surface to be a good deal, which is why I'm considering it at all. I'm really just trying to understand what might be under the surface waiting to catch us out.

No worries, my advice is save up for a deposit that will buy you a house in your name only and avoid this scheme which is only designed to sell overpriced outstanding stock.

Best of luck.

Meeper

I'm not really looking for affirmation or warning. I'm really looking for peoples advice on what the shared equity thing means in real terms.

Basically, they lend you 20% interest free for 10 years, so you only need a 5% mortgage. at the end of 10 years you either have to pay for 25% of the house outright or sell and only keep 75% of the proceeds.

You have answered your own question. That is exactly what it means. So - what exactly do you want from anyone here other than affirmation or warning?

beecher2

You'd have to be sure you were in a position to pay back the 25% in 10 years time. This means ensuring that you put enough money aside, and you need to factor this is as an essential 'payment' when looking at your budget and weighing up the costs.

Something important to think about is that you would have to pay 25% of the value in 10 years time, rather than the value now which is also something to keep in mind.