Shared equity mortgage options

fwabbly

I am in the process of buying a house on a shared equity scheme and after a brief chat with a mortgage advisor they mentioned that I would be stuck with a small choice of shared equity mortgages.

I have looked at the shared equity mortgage from Natwest which is fixed for 2 years but would rather get something like the first time buyer fixed rate for 5 years. The terms of the normal mortgage dont exclude people with shared equity as far as I can see. Are normal mortgages available to me when I am buying with a shared equity scheme?

Just to be clear, I am using a developers scheme and it is shared equity not shared ownership, so I wont be paying any rent on the other part.

Moglet

As far as I know, Natwest's shared equity mortgage is only for government approved shared equity and not builder shared equity. Halifax and Nationwide seem to be the main contenders.

fwabbly

Moglet wrote: »

As far as I know, Natwest's shared equity mortgage is only for government approved shared equity and not builder shared equity. Halifax and Nationwide seem to be the main contenders.

Thats what it looks like on the Natwest website. I couldnt see anything on the Halifax website but the Nationwide site says that you need to contact them for shared ownership and doesnt mention shared equity.

Moglet

More info on Nationwide here: http://www.nationwide-intermediary.co.uk/content/lendingcriteria/schemes/ Halifax here: http://www.halifax-intermediaries.co.uk/products/mortgages/affordable_housing/default.aspx

These are the broker sites but useful for gathering info.

kingstreet

I put an 80/20 split in Trigold and assumed you would put down no deposit and five lenders came up including Halifax, Nationwide, Cambridge, Dudley and Vernon.

I then took the same share split with 5% deposit and this added a further four lenders, NatWest, Newbury, Principality and RBS.

You'll need to talk to an independent broker to establish which lenders accept SE deals with builders as some will only lend on property offered by a Registered Social Landlord.

Watch out for geographical restrictions with smaller building societies!

Cambridge BS has the lowest five year fixed at 4.69% on the deals where a deposit is paid by the borrower, although this is restricted to Eastern England only.