remortgage advice - open market homebuy shared equity

wtknsstp

I bought my house in April 2008 under the open markey homebuy scheme with an equity loan from tower homes (now l&q) and and interest only top up with the mortgage from yorkshire bs.
Now my 5 year fix rate is coming to any end i am trying to find the best deal to remortgage.
Any one have any ideas so i am left with a repayment mortgage and the jousimg association eqity share?

Having a lot of difficulty finding anything online about remortgaging shared equity schemes

cheers

:-)

Thrugelmir

Unlikely that you obtain another interest only mortgage.

Can you afford to start making overpayments to reduce the capital balance owed?

kingstreet

wtknsstp wrote: »

I bought my house in April 2008 under the open markey homebuy scheme with an equity loan from tower homes (now l&q) and and interest only top up with the mortgage from yorkshire bs.
Now my 5 year fix rate is coming to any end i am trying to find the best deal to remortgage.
Any one have any ideas so i am left with a repayment mortgage and the jousimg association eqity share?

Having a lot of difficulty finding anything online about remortgaging shared equity schemes

cheers

:-)

The first thing you have to do is contact myfirsthome;-

http://www.myfirsthome.org.uk/

This is the organisation which deals with post-sale issues on Homebuy, Firstbuy etc.

You have to get their agreement to postponing the second charge. Otherwise, when your mortgage is repaid, the second charge would be promoted to a first, leaving your new mortgage lender with a second charge and that would not be permitted.

I'm currently arranging a shared equity remortgage and am going through this for a client. I'll update the thread with developments.

So far, I'm told Barclays/Woolwich will not accept such cases and Nationwide will not accept an application where the borrower is within five years of the commencement of interest payments on the equity loan.

I suggest you ask your lender if it has a customer retention product you can switch to, as I am doing with Natwest, my client's existing lender. This will at least give you a comparison with any potential remortgage product.

wtknsstp

Thanks i want to start a repayment for the entire mortgage leaving the 2nd charge for the equity loan.

Did ask ybs but they said the can not do anything but leave me on the current mortgage

I thought there would be more info on the web as i was right at the end of the scheme so thought loads of similar stories would be out there

kingstreet

Update on remortgaging SE property

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.