25/75 Equity Scheme - Mortgage lender questions

Button_Moon

Hi,

I had a 3 year fixed mortgage with Halifax starting from June2008, it was set at 6.19% borrowing approx £97,000, it has since gone onto the SVR of 3.5% and then 3.99% in recent times. The mortgage was based on a 25% shared equity scheme with the builder (purchase price of £130,000) so they loaned me £32,000 towards the mortgage.

Looking back at me mortgage details and having spoken to Halifax they have given me a 100% mortgage scheme on £97,000 rather than a 75% mortgage on £130,000... In my eyes this is incorrect as I should have been offered a better interest rate for having the 25% deposit rather than nothing.

I have logged the issues and it can take 2 weeks for them to reply. Could anyone help me if they come back and argue against the case? Would anyone have any details on Halifax rates back in 2008 based on a 75% mortgage.

I feel that they owe me money for charging me the wrong rate. I have paid off virtually nothing due to it being a 100% mortgage and have since stayed on the SVR because I don't have the equity to start a new product, where as actually I do!

Many thanks.

Thrugelmir

What deposit? You injected no cash.

Button_Moon

The builder injected the deposit (£32,000) but Halifax put this to one side and then set up a 100% mortgage for the remaining amount. So rather than have a better rate and initial amount paid off I was stuck with a higher fixed rate and paying off a heavy amount of interest for the past 5 years.

amnblog

The builder did not 'inject the deposit' they retained 25% of the value of the property.


You should read through your initial paperwork from the purchase once again.

antrobus

Button_Moon wrote: »

... I have paid off virtually nothing due to it being a 100% mortgage and have since stayed on the SVR because I don't have the equity to start a new product, where as actually I do!.....

I think you have misunderstood. You don't have any equity in the property. The builder does. That's what 'shared equity' means.

Where you to sell the property today, the builder would get 25% of the proceeds and you'd get to keep the rest. That 25% is not some gift; the builder will expect to get it back sometime.