Part ownership mortgage renewal help

worried_about_money

Hi,

I'm hoping for some advice/hints and tips. I'm completely out of my depth when it comes to mortgages, I find the word itself panic inducing and I don't understand half of the terms used or the differences between it all. I'm not stupid, but I get confused as to what actually applies to us and there is A LOT of info out there I'm having trouble filtering it and understanding it all. (Sorry I'm waffling on!!)

Anyway our history is we both have OK jobs but when it came it getting a house we had no deposit (we spend up to the hilt every month so can't save and no we are not extravagant!!) and our only way to get onto the housing market at all was to get part ownership. We were only allowed to go with West Bromwich at the time.

We have 40% of the house. Everything has been fine for 7 years until the latest fixed term expired and they have sent us a letter saying that we are going up 5% this year and our monthly payments will increase next month by £120 which we simply don't have. The last times our fixed term ran out we spoke to them and they put us straight on another one with no issues, but this year apparently the rules have changed and they can only offer us a rate of 7% which seems very high. The last time our mortgage was due to change they contacted us 3 months in advance of the change to sort it out, we are kind of in shock that they have become so rude and unhelpful on the phone and they have not given us much time to research and switch.

So hopefully I've explained what our situation is. It feels very desperate to us. We both work for local government and have had no wage increases for over 5 years, but our rent has increased. We have coped (just) but now with this I cant explain how bad we feel regarding this sudden change to our mortgage. For the record we haven't had a holiday in over 6 years and have no idea how other people manage to afford it so as a sideline would love any advice on that too lol!!

I'm getting distracted. Right my questions are - where do I start looking for a part owned mortgage? What should I look for and what are the right questions to ask the bank?

If you have any help or advice I'd be greatly appreciative, I'm finding this very overwhelming and stressful.

Kind Regards x

ViolaLass

I can't help on the mortgage side (I'm sure others will be able to) but get yourself over to the Debt-Free Wannabee board, where you can post a breakdown of your spending/budget and posters will, I'm sure, be able to help you save money.

worried_about_money

Thank Viola I will, I just want to get the mortgage side sorted first. We are very careful with money. I get the majority of my clothes from boot fairs and charity shops for example :S there is just not much left over. My next step is to plan dinners with military precision to make the most out of leftover etc..

kingstreet

A shared ownership remortgage is going to depend on how much equity you have in the property and affordability.

You will find it easier to do this via a broker than direct, as there are fewer lenders who offer such products, than standard ones.

worried_about_money

How much would a broker cost? hundreds or thousands? sorry, I am so new to this its painful

kingstreet

Ask friends and relatives for a recommendation. Fees vary, with some brokers charging nothing.

The alternative is to roll your sleeves up and do your own research by using comparison sites, Money Advice Service and perhaps talking to the HCA Help To Buy Agent and/or Housing Association.