Shared Ownership Mortgage

markjsmk

Hi

Looking for some advice, new to this mortgage stuff!

I'm purchasing a shared ownership property.

I originally went through a mortgage adviser, but the mortgages were quite high so I thought I'd do an online application with the HSBC.

The property value is £115000.00. The 50% share is £57500.00. I planned to put down 5% deposit (I can do this? doesn't have to be 10%?) - therefore £2875.

So in the mortgage application under:

"What's the property's estimated purchase price?" I've put £115000.00

For the deposit I've put £60375 (the 50% share retained by the housing group £57500 + my 5% depost £2875.00)

Therefore showing the amount I want to borrow as £54625.00 (as this is an automatic calculation worked out from the above - I can't manually add a figure).

Is this ok for me to do? Ive said on the application that it is shared ownership under "Is the property part of a special purchase scheme?".

Also under:

"Who will own the property? These people will appear on the title:"

I've just put myself, should I also be listing the housing group who own the other 50% share?

Thanks to anyone who can advise

Mark

Southend1

Doesn't sound like their online application is set up for shared ownership. Maybe give them a ring to check?

kingstreet

SO products are more expensive because there's little competition for the business at higher LTVs.

HSBC is doing 95% on shared ownership?

Interesting. Not newbuild then?

jellyfish76

Not that many lenders will let you borrow for shared ownership homes.

HSBC are one of the strictest lenders so I'd be surprised if they do.

I think you need to be prepared for the fact that SO mortgage tend not to have amazing rates featured on websites for "normal" mortgages.

To be honest, I'd go back to the broker rather than waste time and money applying for mortgages you don't qualify for.

markjsmk

So would my LTV based on this be 45% or would it be 95%? Is the LTV based on the property value or the share value I'm buying?

jellyfish76

on the SO mortgage it would be 95% LTV based on you putting down a 5% deposit.

Your mortgage is based on the amount of the share you are buying, not on the total house price.