Shared equity,Scotland

stevefen23

Hi

I had a look at a new house today,full price £184950,there is a shared equity deal at 80/20 which would take the amount req to buy £147960. I have £17000 saved and I have a one bed flat that I'm hoping to sell and make £5000 if I'm lucky.

I have a mortgage promise for up to £143000 with Halifax.

I don't really want to go down shared equity route but it's a house that is big enough for us and if we have anymore additions to the family,we wouldn't need to move again.

What's people opinions on shared equity? We have to pay back the 20% of whatever the house is valued at in 10 years time.

I believe shared equity schemes are going to be banned in Scotland soon,I don't know if the government thinks its a ticking time bomb.

Cheers

Steve

brit1234

It is a scam. Your right about the time bomb coming with shared equity, it starts in 2013 for the 5 year loans. You will hear about lots of people in trouble then trying to remortgage and having negative equity while rates are higher and the added loan repayments kick in.

I do hope they are banned in Scotland.

stevefen23

I just don't know what to do,it's a cracking house and exactly what we need but I just don't want to be owe somebody 20% of whatever the house is valued at,could be £30k,£40k,£60k???? How can anybody afford to pay this back?

brit1234

Best save some more and enjoy the price falls in 2012. If Scotland bans shared equity the developers will be forced to lower prices or come up with some other dodgy scheme.

stevefen23

If shared equity is stopped then I won't be able to buy new,which isn't really a problem,I'll be quite happy with an older house,just could never have 20% deposit for a new build,not possible to save that amount and we need to move now,baby needs her own room.

Fiddlestick

stevefen23 wrote: »

I just don't know what to do,it's a cracking house and exactly what we need but I just don't want to be owe somebody 20% of whatever the house is valued at,could be £30k,£40k,£60k???? How can anybody afford to pay this back?

Would the house really be worth it if you were buying it at 100% of the value rather than 80%?

stevefen23

Fiddlestick wrote: »

Would the house really be worth it if you were buying it at 100% of the value rather than 80%?

I wouldn't get a mortgage for that amount of money,you would get an older bigger house for that sort of money. I would rather have an older house that i would own outright.I have gone off the idea of shared now,emailed Halifax about keeping my flat to rent but they wouldn't lend me enough after that to buy something else. Need to find something else to fund my retirement!

Cheers