Shared Equity Help

sarah_23

Hi All,

I purchased my home 6 years ago for 130k using the SE scheme.


Property £130000
Shared Equity 80/20 £104000 ( £26000 is what we will owe to the builders)
Mortgage is (after paying a deposit) £97500 x 25yrs

We received a letter today saying we to start looking at options on how to pay back the 26k, there will be a 1.75% charge on the 26k per year and it will increase yearly. Our financial situation has drastically changed and us paying 1.75% on loan payments enough is hard enough. Are there any schemes that help in a situation like this? We need some help but have been told that we either sell up or rent as the 1.75% has to be paid and there are no ways around it.

chanz4

Afraid so, have you saved any?

amnblog

Are you saying you are going to struggle to handle an extra £500 a year in interest?


if so, a re-mortgage of your current main mortgage will compensate if you can shave 0.5% of off the rate.


However, if things are that tight you might struggle to arrange other lender options.