Shared Equity query...

coolfreeze

Hi all,

This is my first post so be kind!

Me and my wife bought our first property a couple of years ago. It was an apartment with a shared equity deal with the developers (Shepherd homes). We put in a 5% deposit, they in turn put in 15% which we owe them back whenever we sell or remortgage.

My query is a long shot at best, but it is in regards to it being mis sold to us (that is the shared equity promotion).

We have never been given any paper work for our shared equity deal and therefore only know what we where told verbally at the time of purchase. Everything was done through Shepherd Homes, we used there financial adviser who informed us that only Halifax were doing shared equity mortgages, so that is who our mortgage is through.
Looking back now, i know we rushed, but with a baby on the way and still living in my parents it was the most accessible option for me and my wife. We are not looking to sell at the moment however we will need to remortgage soon and that is why i thought it best to seek a bit of clarification on the matter. Who's best to remortgage through or is it still only Halifax, have people had bad experiences when trying to pay back their shared equity....

My financial knowledge is fairly limited! so any advice kindly given with be kindly received.

Thank you!!

kingstreet

You would have been given the necessary information about the shared equity by your solicitor, as this is a second charge over your home in favour of the builder.

A mortgage advisor would not give advice on shared equity. They would simply tell you what it is and how it works. It would be for you to decide if it suits your needs.

You have the option of returning to Halifax for a customer retention product, or Product Transfer as they call it.

Remortgaging to a new lender with the second charge in place would require the holder's permission and a postponement of the second charge, or you would need to have enough equity to repay it and have the first mortgage alone after remortgaging.