Shared Equity Mortgage Providers

motownick

I bought my home through the Places for People administered Ownhome scheme in 2009. This is a shared equity scheme. I have a mortgage equating to 60% of the purchase price through Co-Operative Bank (the schemes partner) and Places for People paid the other 40%. I currently pay nothing to Places for People on the money that they have loaned me, but after 5 years I will begin to pay them interest at the rate of 1.75%, after 10 years I will pay interest at the rate of 3.75%. I will have to pay them back their 40% share of the property at some point.

My current mortgage is a tracker at 1.89% above the base rate, but this is coming to an end. Having had a look at Co-Op’s mortgages at the moment, they don’t seem to be particularly competitive. I have spoken to Places for People and the Co-Op and I am able to remortgage to another provider. I found a couple of mortgage providers that are offering 5 year fixed rates under 3%, but after a considerable amount of time on the phone with them, they inform me that they don’t offer shared equity mortgages.

Therefore my question is does anybody have a list of mortgage providers that have products for shared equity (not shared ownership) owners? If you don’t have an entire list, if you have a shared equity mortgage, maybe you could at least tell me who your mortgage is with? I think it will be a lot quicker to research the best mortgages from the providers available to me, rather than going down a list of the best mortgage rates until I find someone that will accept shared equity owners.

Thanks in advance for any help that you can give me.

ACG

A lot of lenders have products for shared ownership/equity. However there will only be certain lenders that places for people deal with.

You could do with speaking to places for people to see who have agreed to their leases....as far as im aware co-op is probably the main one.

motownick

Thanks ACG, I spoke to Places for People and their only requirement was that the mortgage had to initally be taken out with the Co-op. They have confirmed that I am now free to re-mortgage with whomever will accept me. It's just proving difficult to find out who those lenders are that will accept me!

I also should add that 2 of the lender with 5 year fixes below 3% that I contacted, offered shared ownership mortgages, but not shared equity.

motownick

Thought I'd try and give this a bump as posting on the Friday evening of a bank holiday weekend probably isn't the best wasy of getting replies!

Would be really grateful if anyone can give me even just one provider that offers Shared EQUITY mortgages(it's quite easy to find list of Shared Ownership mortgage providers via google, but this is different)

munchkin30

Hi Motownick,
I have a shared equity mortgage (on a slightly different scheme) which I originally took out with Natwest - when my first fixed rate was finished, they moved me onto a standard mortgage product with the rates the same as "normal" people. They may be worth a shout?

motownick

Thanks very much for this. I rang NatWest and they only accept new shared equity purchasers and won't remortgage. I'm going to do some investigation into providers and will post my results in case it's of use to anyone else in the future.

motownick

In case this helps anyone, I ended up contacting a broker (London & Country) and they found a number of deals available to me, however the Co-op have offered me some fantastic rates (not available on their website) and so i have decided to stick with them - although the broker found a product at the same rate, they thought it best that I stayed. Therefore, if anyone else is trying to remortgage a shared equity property, I would reccomend using a broker to find the lenders that are willing to accept you

harvey115

If your current lender is able to give you better rates, it is a much better and easier route rather then to remortgage as majority of the times people forget to factor in the costs involved (fees, valuation etc) and sometimes it adds upt to almost no gains.

smehmood76

I bought my house on a shared equity basis which was provided by the builder with mortgage from Nationwide. The existing mortgage is for two years which is going to end in February 2013. I have contacted Nationwide for remortgage rates and was surprised to hear that they will consider 90% of market value of the property to the outstanding balance which increased the LTV to 80% compared to 75% on which initial mortgage was offered. Is this something normal or its only me who is getting this privileged treatment.

I will also appreciate if you can help with other lending institutions which offers remortgage for shared equity schemes.

Thanks

kingstreet

They are offering you a customer retention product, not a remortgage product. Remortgaging is replacing your old mortgage with one lender with a new one from a new lender.

Nationwide has a policy of not offering better products to new borrowers than it does to its existing ones. This may be why. Although it's not beyond the realms of possibility the telephone operative has not cottoned-on to the shared equity issue.

Get what they are offering in writing.

kingstreet

Update on remortgaging shared equity.

Remortgaging Homebuy Direct and Firstbuy


Consent required from HOP.


Housing Options Plus/Metropolitan
The Grange
100 High Street
Southgate
London N14 6PW

Tel 0845 470 0121
Fax 0203 535 2755


They need;-

Copy of formal mortgage offer from new lender, not exceeding 25 years, however if original term was longer this will be accepted although proof will be required ie copy of original offer

New mortgage must be equal to, or less than, current amount.

Solicitor’s details

Redemption statement from current lender

Copy of new lender’s deed of postponement

A cheque for £115 payable to Metropolitan Housing Trust to cover non-refundable admin charge.

Send all to HOP by post or email hop.team@metropolitan.org.uk

Once received, HOP will provide guidance pack to solicitor who will handle docs

Increased borrowing is a different process and unlikely to be permitted.