About Shared Ownership Mortageges...

Leighthal

..Does the lender dictate the portion of the shares or can I decide how much I would like to own and share?Also at a future date can the lenders share be bought out?
Any links to Shared ownership mortgages would be greatly appreciated.

ctabuk

Are you asking about the Homebuy system? The Government funded Shared Ownership Schemes such as Open Market Homebuy, New Build Homebuy and Social Homebuy or about a one off with a Housing Association of Builder/Developer? I need the info in order to reply more fully, but in General terms the amount of mortgage that you can afford (safely) governs the percentage of the ownership, but with staircasing (buying more) as time goes by.

izoomzoom

Hiya

Not exactly sure what you are after.

The lender (bank) usually only lends you in accordance with their lending criteria (ie income multiples, affordability etc), whereas the Housing Association may only sell a fixed percentage of the total property value (but you may be able to negotiate a higher percentage), or you could staircase and purchase more at a later date. Is this what you were asking about ?

There are a large number of lenders that deal with SO but it all depends on your circumstances. Most people, including I, would suggest you contact a fees free broker so that they can search for the best deal for your particular needs.

Leighthal

I am currently in the process of inheriting a property valued at 250k.My sister would like to sell her half as she lives in Australia.I would love to keep the property for my own family but think that the 125k mortgage would be a stretch.
I have my own mortgage of 23k left on a terraced house roughly valued at 55k.My income however is only 16k gross.The family income would double in a few years when my wife goes back to work after we stop having babies :j (have 2 toddlers with a third arriving in April next year:beer: ).The only other option I can think of is to take an IO option and hammer the capital with the wifes wages at a future date.I'm 39 years old btw and the wife is 27 if that increases any options.

izoomzoom

Is the property you have inherited a shared ownership property with a housing association or was it owned outright (or with a mortgage) by your relative and you and your sibling are now the shared owners ?

bloaty

izoomzoom wrote:

Hiya

Not exactly sure what you are after.

The lender (bank) usually only lends you in accordance with their lending criteria (ie income multiples, affordability etc), whereas the Housing Association may only sell a fixed percentage of the total property value (but you may be able to negotiate a higher percentage), or you could staircase and purchase more at a later date. Is this what you were asking about ?

There are a large number of lenders that deal with SO but it all depends on your circumstances. Most people, including I, would suggest you contact a fees free broker so that they can search for the best deal for your particular needs.

Hi izoomzoom

What do you mean by "fees free broker"?

My son is arranging to see an independent mortgage advisor througjh Whitegates Estate Agents. He said there is no fee if you don't proceed but if you were to arrange your mortgage through him they don't charge a % but a one off fee of £245. For this they would liaise with the lender, solicitor and estate agent.

Is this what you mean?

Thanks

Leighthal

izoomzoom wrote:

Is the property you have inherited a shared ownership property with a housing association or was it owned outright (or with a mortgage) by your relative and you and your sibling are now the shared owners ?

It was owned outright by our Mum.

toonfish

shared ownership isn't really an option - are you going to sell your existing property, or keep it and rent it out? Either way that would give you more capital, or potentially extra income.

izoomzoom

bloaty wrote:

Hi izoomzoom

What do you mean by "fees free broker"?

My son is arranging to see an independent mortgage advisor througjh Whitegates Estate Agents. He said there is no fee if you don't proceed but if you were to arrange your mortgage through him they don't charge a % but a one off fee of £245. For this they would liaise with the lender, solicitor and estate agent.

Is this what you mean?

Thanks

I hope a 'broker' comes along to state the facts, but is the WEA broker a whole of market broker (ie has access to every single product on the market), quite often you hear of EA brokers that only have access to a small range of lenders, which may mean that there is a better deal for you which your broker doesn't know about.

Also this broker is not fees free - he is getting his commission from you if you do proceed with his recommended mortgage (why would the broker recommend X mortgage - perhaps he gets a better commission ?).

Some say that it is better to charge a fee but I personally don't think so. My broker didn't charge me a fee - he gets his commission from the lender. He also gets a commission from the insurance co for any insurance that he sells us too.

With regards to the liasing with EA, solicitor and lender, I personally feel that solicitors work for you, so they should be accountable to you. It must be so frustrating for your sol to have a call from the client, his EA and broker when all he really has to do communicate with is you.

HTH

izoomzoom

toonfish wrote:

shared ownership isn't really an option - are you going to sell your existing property, or keep it and rent it out? Either way that would give you more capital, or potentially extra income.

Leightal: Yours isn't a 'shared ownership' property although its ownership is shared (as is most couples I assume too).

I can't possibly tell you what you could borrow or who from, but would you not make an arrangement to your sister to rent any % of the house that you are not able to get a mortgage for ? You would definitely need sol advise on this though !

Leighthal

Thanks for all the replies.'Shared Ownership' sounds way too compliated.I will probably try for the IO mortgage solution and hammer away at the capitol when my wife returns to work.