Shared ownership Mortgages

nomorecreditcards1973

I'm fed up of renting in a shared house and I'm wanting to make a second attempt at getting on the property ladder through Shared Ownership in the next 12 months.

Due to being on a low income, this is the only way for me to get out of renting, so I understand that it has its disadvantages.

For me the positives are having my own place and privacy as well as owning part of a house rather than nothing at all.

There doesn't seem to be much on the forums from people who own property this way, and I'd like to ask where have people gone to get special shared ownership mortgages and how has the whole first time buyer experience been?

Any advice would also be greatly appreciated.:)

kingstreet

As the rent and service charges will reduce what you can borrow, it's worth speaking to an experienced independent broker to establish what is possible.

They can run affordability calculations for the lenders which will be open to you and ensure you meet the affordability requirements of the HCA which manages the Government money.

ellesbellesxxx

Hi,


I saw a mortgage broker to get my mortgage for shared ownership as they could access allthe mortgages which allowed shared ownership...I went with Nationwide in the end

kingstreet

Choice of lender will depend on whether it's a newbuild or resale and the loan to value.

If a newbuild, Nationwide applies its normal max LTV, 85% for houses or 75% for flats. Even on a lower purchase price, there are very few people buying on SO who have 15% or 25% deposit.

That's why it's essential to speak to a broker experienced in SO and newbuild, if that's what you're buying.

nomorecreditcards1973

Thanks for your input, I'm looking at re-sales at a 25% share. I would love for there to be SO new builds in the area that I live but there is nothing closeby. All new builds seem to be student flats or are just way out of my price range. So re-sales it is, I was looking at a new build a few years ago and they were lovely, but very tiny of course. But sadly got made redundant not long after so that all went on hold, and so I went off abroad to travel for a couple of years instead.