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Shared Ownership Mortages
chimp42
Posts: 1 Newbie
Hi, I'm not sure if I am correct, but has anyone else found that the interest rate on Shared ownership mortgages are far way above any deals that are currently available! I am on a 5.6% rate! And there i was thinking this was an initiative to get people back on the mortgage ladder!! Anyone else found this problem?
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Sometimes, but not always.
If you want to get on the property ladder, this is a way for you to do it. You can't expect to be able to get away with getting a house you otherwise wouldn't be able to and not have to pay for it in the rate.I am an Independent Financial AdviserYou should note that this site doesn't check my status as an Independent Financial Adviser, so you need to take my word for it. This signature is here as I follow MSE's Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Hi
I got a shared ownership mortgage for 100 k and it was 5.18 % but it was in 2007 and it was no more than everyone elses now my deal has ended I'm on the base rate but I don't think you back any extra are you going thru a broker it's better than going for the providers mortgage partner.
Good luck.0 -
Not sure why there is the rush to get on the property ladder when prices are falling!! In the UK we seem obsessed with owning our own property. Be careful on shared ownership in blocks of flats where there is normally a hefty service charge, avoid flats where possible. The developers and RSL's are desperate to get shot of them!0
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no, mine was 3.59% edit: sorry, wasn't much of a useful post without saying it was with Nationwide!!Spreadsheet-obsessed.0
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What deposit are you putting towards the purchase of your share? What will the loan to value be?Hi, I'm not sure if I am correct, but has anyone else found that the interest rate on Shared ownership mortgages are far way above any deals that are currently available! I am on a 5.6% rate! And there i was thinking this was an initiative to get people back on the mortgage ladder!! Anyone else found this problem?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Most lenders don't even want to entertain shared ownership mortgages, and those that do offer them charge through the nose for them.I am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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mine was on 5.9% but has now dropped to 2.5%0
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charleyroo wrote: »that's not strictly true.
If the rate is decent, the criteria will be so tough that 90% of people won't qualify for it.
It's the high rent that normally kicks these applications into touch on affordability.I am a Mortgage adviserYou should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
If the OP returns, we'll probably find out the deposit is 5% and the mortgage is therefore 95% of the share to be purchased. I'd then point out a 95% mortgage on an "ordinary" property would cost over 6%, making the OP's 5.6% look like a good deal.
If you compare a 2.8% tracker only available on a LTV of 65%, 5.6% is going to look bad, isn't it?I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
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