Shared Ownership - unfair mortgages

samoto2

Can anybody explain why all mortgage lenders I have spoken to will give me a 4.7% mortgage on any property EXCEPT the one I am currently living in?? I bought a 50% share of it 5 years ago and now want to buy the rest of it with a 10% deposit. I am only being offered a 6% mortgage deal. My mortgage advisor was vague and said something about "shared ownership properties don't hold their value".
Any advice would be greatly appreciated.

kingstreet

Have you asked your current lender?

So what is the value/purchase price?

If you are staircasing upto 100%, the fact it has been shared ownership until no should make no difference. If it was a newbuild 5 years ago, is it the end of the newbuild premium depressing the value that's the perceived problem?

The HA will have had its share valued by a surveyor, so the figure they have should be there or thereabouts.

Either way, you're applying for a 90% mortgage, so you should be able to apply for the best rate available at 90%. If the surveyor has issues over the value, that doesn't come up until later.

samoto2

Hi, we have an appointment with existing lender tomorrow. The house was valued at 140k 5 years ago and I got a mortgage for 67500 (putting down 2500) to buy half of it. The house is about 15 years old and worth about the same as when I first bought my share. I pushed the mortgage broker and he first of all said that mortgage lenders assume that most of the surrounding houses are also HA properties and that they do not hold their value. I presumed he meant that this made the area "dodgy" in terms of social problems. Again, I asked him to clarify and he backtracked, saying it was purely based on my property, not surrounding area.

Cornball

Try Halifax and HSBC. They both offered me sub-6%.

kingstreet

samoto2 wrote: »

I presumed he meant that this made the area "dodgy" in terms of social problems. Again, I asked him to clarify and he backtracked, saying it was purely based on my property, not surrounding area.

This seems like pure speculation and won't be known until the lender's surveyor goes out to value the property.

As I said earlier, this should not affect the recommendation of the best 90% product to match your circumstances. Perhaps it's time to ditch the broker?