Shared Ownership Mortgage

charman

Hi,

I am looking for some advise regarding our situation.

We currently have a shared ownership flat which we purchased in May 2008 for £175k. We have a 30% share (£52500) with a 25yr shared ownership repayment mortgage with Kent Reliance at 6.45% which the fixed rate ends May returning to 1.75%. We understand the value of the flats are £145K and our mortgage is currently £48K when I phoned them today to find out what happens in May.

I am presuming if we sold the flat we would owe £4500 (based on £43500-£48000) or would the mortgage company give us a revised figure if we are selling? Also, what are the normal figures for working out the amount mortgage lenders would lend you from salaries?

Thanks

kingstreet

Your figures look right. You would have a shortfall of £4,500. You would need the permission of the HA and the lender to sell in such circumstances.

Has the HA had a surveyor value the property?

You can normally borrow 4x joint gross incomes, after deducting any credit and dependents costs. Play with lenders' online affordability calculators to see what the output might be.

Don't forget you need to cover a deposit, 10% or more and the costs of moving, if buying again.