Need some Shared Ownership Advise

Slayerx

I understand the principals, as I work for a conveyancing company but im not too clued up on how I apply and if I can apply as a sole applicant and most importantly which lenders do the mortgages for them.

Any help would be much appreciated.

The_Bear_6

What kind of LTV are you looking at?

If it's 100% then Kent Reliance, Ipswich and possibly Woolwich at a stretch will do it.

Slayerx

Im hoping to raise a small deposit but im on a low income so i don't even know what I can borrow.

Im only earning 13,300 before tax a year, if I get the promotion at work it will jump to 17k.

deanrpwaacs

hi there.
it sounds like a good idea but you really need to bye outright as soon as possible or you could find yourself in the same position as i am now in.
i will explain.
1994 decided to purchase house with partner through s/ownership as being low earners and young we could only raise a £44000 mortgage,so found a 3 bed semi with loft conversion at £55000 .
we took out a 50% share £25000 mortgage and moved in.
after years of financial doom and gloom i am now just starting to earn a fair wage and 3 lovely daughters later i am running out of room and looking to bye the rest of the house with a veiw to extend.
But wait !whats all this !the house prices have gone through the roof and i am now looking at a house valued at £230000.
so in order for me to bye the remaining share i need another 115000 plus the cost of the works.
the housing association are a non profit making organisation of course but £97500 better off.
what do i do i feel like a first time byer again lol.
is there a way of getting a reduced valuation as i feel im still in the same position as i was all those years ago.
im not interested in making money on the house i just want to give my family a good home to live in and selling up or moving are not an option.

Slayerx

I would love to buy outright but wouldn't get anything for what I can borrow.

I would be happy with a small one bed room house lol.

I see what your saying about the problems with the part of the house going up in value while you don't own it.

homer_j_3

we just sold a few of these houses in the estate agency where I provide advice and I have been led to believe that each scheme can have its own criteria but as you understand the principal, I could only say that you need to start looking at schemes in your area and making direct enquiries.

The leeds bs do a 100% ltv in your share also and the nationwide and abbey will do 95% from what I can recall off the top of my head.

The_Bear_6

Well you still get a percentage of the equity rise but it is always wise to know what you are getting in for. A shared ownership mortgage is not a "cheap" mortgage, it is an opportunity for low earners to take but not let slide when your pay increases.

Taadaa

We have an SO mortgage with Portman - originally with Lambeth, but they merged, and now they are looking to merge with Nationwide. I don't think there are many that offer 100%, but it's not impossible.

I agree with posting further up the page, it's really only for those who really cannot and will not be able to buy outright in the near future. I wish we hadn't done it. We bought a flat, and we are no nearer being able to afford a house than we were when we bought four years ago. Only now my body clock is ticking and we HAVE to move. We might have to go back on the rental market for a year or so.

Not to mention the fact our rent and service charges are far higher than the mortgage payments, and I don't think much of the service we receive either. We are paying for their admin costs and funding other developments effectively.

Sorry chuck, but better to know now than regret it later.

fay66

i had a mortgage with preferred mortgages i did put down a huge deposit but sold it last year, the good thing is the other half you rent .the rent is very low in comparison in what i would cost you to buy the other 50% ie my rent was £112 on £60k a month