Shared Ownership Mortgage

JoeK_3

Whether you're a chav or a chavette, lenders will accept you for a 100% shared ownership mortgage, subject to your income/s being sufficient and credit history.

See a whole of market mortgage broker.

JoeK

Bargain_Rzl

liz105 wrote: »

1. not all shared ownership or shared equity purchasers require a 100% mortgage

2. not all shared ownership/shared equity schemes are backed by housing associations

3. Not all SO schemes result in "crippling" outgoings

Mine costs me £200 less a month than I would have to pay to rent a suitable home, and £200+ a month less than I would have to pay to buy one (that's if anybody would have offered to lend me nearly 5 times my income in the first place, and if I'd been daft enough to take them up on the offer at a time when interest rates were obviously about to go up).

4. NONE of the shared owners I know are chavs...

Yes, some schemes represent very poor value for money, but I don't live in one of those. Hey, maybe that's where the chavs live

poppy10_2

Bargain_Rzl wrote: »

Mine costs me £200 less a month than I would have to pay to rent a suitable home, and £200+ a month less than I would have to pay to buy one (that's if anybody would have offered to lend me nearly 5 times my income in the first place, and if I'd been daft enough to take them up on the offer at a time when interest rates were obviously about to go up).

Need some evidence to back up your figures. How much is the home worth? How much are you paying in mortgage+rent?

I'm staying in a £200,000 house for just £550 rent. An mortgage would cost me £1000 even on just an IO basis (i.e. just renting from the bank and not paying back any of the capital.)

tara747

liz105 wrote: »

1. not all shared ownership or shared equity purchasers require a 100% mortgage

2. not all shared ownership/shared equity schemes are backed by housing associations

Myself and my husband, possibly two of the least 'chaviest' people around purchased 75% of a brand new property in nov 2005. we do not have to pay rent on the rest. we didnt take out a 100% mortgage.

Our share has gone up by £25k in 18 months

Have you earned that sitting in your rented property??

Nope, didnt think so.

Ah, I see you have a nasty condescending attitude to renters, so I feel ok about getting a jibe in.

How are you going to find the money to buy the other 25% if it keeps going up in value?



Not so clever now, are we?

:rolleyes:

phlash

liz105 wrote: »

1. not all shared ownership or shared equity purchasers require a 100% mortgage

2. not all shared ownership/shared equity schemes are backed by housing associations

Myself and my husband, possibly two of the least 'chaviest' people around purchased 75% of a brand new property in nov 2005. we do not have to pay rent on the rest. we didnt take out a 100% mortgage.

Our share has gone up by £25k in 18 months

Have you earned that sitting in your rented property??

Nope, didnt think so.

And how exactly did you 'earn' that £25K? It's complete speculation, you never know, next you could earn -£25K.

So if there is a correction in property prices, should all the renters go and say to the home owners "how much did you save sitting in your house". I'm guessing your answer would be no.

tara747

phlash wrote: »

And how exactly did you 'earn' that £25K? It's complete speculation, you never know, next you could earn -£25K.

So if there is a correction in property prices, should all the renters go and say to the home owners "how much did you save sitting in your house". I'm guessing your answer would be no.

Oh I think I just might!

:rotfl:

liz105

tara747 wrote: »

Ah, I see you have a nasty condescending attitude to renters, so I feel ok about getting a jibe in.

How are you going to find the money to buy the other 25% if it keeps going up in value?



Not so clever now, are we?

:rolleyes:

I dont have to buy the rest.

I used to rent, but I couldnt see why I should be paying off someone elses mortgage when I could be paying off my own.

phlash

liz105 wrote: »

I dont have to buy the rest.

I used to rent, but I couldnt see why I should be paying off someone elses mortgage when I could be paying off my own.

Its all to do with the Risk-Reward ratio.

Buying a house in 2007 is more of a liability, since the house prices are at astronomical highs, and interest rates are rising.

You are not always paying off someone else's mortgage if you rent, this is a myth. I pay less in rent than my Landlord pays in Interest, he is subsidising me to live there, and not by any means 'paying off the mortgage'.

You may have had capital gains up to this point, but why are you so certain that you will continue to achieve capital gains?

You have taken on the responsibility of the mortgage, and can you still afford the flat if interest rates go above 7%? Are you still cocky then? Out of almost 100 people polled on MSE, over 80% think interest rates will be at a higher level in two years than they are now. Interesting.

Here's the link to the poll: http://forums.moneysavingexpert.com/showthread.html?t=489079

Bargain_Rzl

poppy10 wrote: »

Need some evidence to back up your figures. How much is the home worth? How much are you paying in mortgage+rent?

By all means.

Home was bought for £145k total (I'm assuming it has not risen in value since then), my share being 40% or £58k. I had a £7k deposit and have a 25-year repayment mortgage for £51k (plus product fee). Current mortgage fixed rate is at 4.89%, and I'm paying £298.92 per month. Monthly rent is £217.50 (calculated at 3% of value of non-owned portion per annum), service charge (which I'm factoring in to give a true comparison with both purchase and rental) is £78. Total monthly cost £594.42. I had no stamp duty to pay as I'm beneath £150k in a disadvantaged area.

Rental in my area - which is one of the cheapest areas of inner London - is at least £750 per month, unless I want a studio flat, which I don't, at least not long-term. This flat is very similar to mine (though mine does not have parking, which I don't need anyway) and in the same area.

My flat at £145k is right at the lower end of the purchase prices in my area and I'd be unlikely to find anything to buy for less than £160k, however for the sake of fair comparison, a mortgage for £138k (given my £7k deposit) assuming an identical mortgage product to the one I have, would be costing me £801.96 per month (£565.20 interest only). On top of this I'd have a service charge, potentially taking it up to close to £900 a month. I'd also be at high risk from an increase in interest rates, with a mortgage of almost 5x salary.

And in case you were going to ask, I am saving/investing/overpaying the £200 difference

tara747

liz105 wrote: »

I dont have to buy the rest.

I used to rent, but I couldnt see why I should be paying off someone elses mortgage when I could be paying off my own.

I agree with Phlash. The boyfriend and I are paying £270pcm between us for a lovely flat in a fantastic area. The flat is probably worth about £270K. We would be mad to buy right now! We earn just over £50K between us and have about £38K in savings - we are just biding our time until after the (more than certain) crash.

Your £25K is just paper equity, which could disappear quite easily. Good luck anyway!

:A

www.propertysnake.com

phlash

Think that's www.propertysnake.co.uk

EDIT: Agh Bum oh well - That's my 200th post. I was going to make it something special, but then an endorsement of such a clever and useful website is acceptable!