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Shared ownership maximum share

sann420
Posts: 122 Forumite

Hi guys
I have been offered a shared ownership property which I have to accept by tomorrow, so an urgent answer would be much appreciated.
The housing agency are offering me 65% share of the flat and I want to buy 70%. I have a mortgage decision in principle for 70% already. And because of my large deposit amount I get a very good mortgage rate 2.59% , 4 year fixed from Nationwide.
The problem is that the housing association has a rule they would only allow me to get a mortgage worth 4.5 times my gross annual salary which means I can only buy 65% of the flat with the deposit I have.
So I am in a situation where if I buy 65% of property I pay £40/month in rent instead of paying £48/month towards my mortgage for the disputed 5%.
This is really confusing me. I thought the govt wanted to help you and not to force you to rent from them. And by next year the price for the 5% will obviously go up because its a London property. Can some one please give me a link to where these rules are actually defined by the govt ?
many thanks
Ali
I have been offered a shared ownership property which I have to accept by tomorrow, so an urgent answer would be much appreciated.
The housing agency are offering me 65% share of the flat and I want to buy 70%. I have a mortgage decision in principle for 70% already. And because of my large deposit amount I get a very good mortgage rate 2.59% , 4 year fixed from Nationwide.
The problem is that the housing association has a rule they would only allow me to get a mortgage worth 4.5 times my gross annual salary which means I can only buy 65% of the flat with the deposit I have.
So I am in a situation where if I buy 65% of property I pay £40/month in rent instead of paying £48/month towards my mortgage for the disputed 5%.
This is really confusing me. I thought the govt wanted to help you and not to force you to rent from them. And by next year the price for the 5% will obviously go up because its a London property. Can some one please give me a link to where these rules are actually defined by the govt ?
many thanks
Ali
0
Comments
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rules are rules im afraid, im not sure what you are trying to achieve here, even by looking them up. The HAs affordability and the lenders affordability may be completely different. The HA probably need to allow for rent/service charge increases in the future.An opinion is just that..... An opinion0
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Building_Surveyor wrote: »rules are rules im afraid, im not sure what you are trying to achieve here, even by looking them up. The HAs affordability and the lenders affordability may be completely different. The HA probably need to allow for rent/service charge increases in the future.
They make the rules based on 7% mortgage rate. I got a mortgage at 2.59% which means I will be paying the housing association rent on a share that I can easily own. £8/month difference.
I am just wondering if I could talk to some body. May be the financial adviser I am dealing with doesnt know what he is doing.
thanks0 -
They make the rules based on 7% mortgage rate. I got a mortgage at 2.59% which means I will be paying the housing association rent on a share that I can easily own. £8/month difference.
I am just wondering if I could talk to some body. May be the financial adviser I am dealing with doesnt know what he is doing.
thanks
I might be wrong, but I think that all the talking in the world would not change this.
As for the extra 5% this is to trivial to get bothered about. If you are so able to afford it, then get an offset mortgage and overpay. At some stage you will be able to staircase your share.You might as well ask the Wizard of Oz to give you a big number as pay a Credit Referencing Agency for a so-called 'credit-score'0 -
There is a HCA shared ownership calculator which analyses your data and confirms the maximum share you can be offered. It is used by the HomeBuy Agents and the Housing Associations.
If it says 65%, it's 65%. End of.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Will I need more deposit for Staircasing ? Specially if I go to another lender than the one I am taking my first mortgage with ?0
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