We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
Lift scheme scotland + searching for mortgages
fortunefaded
Posts: 17 Forumite
Hi
Been approved on open mark lift scheme, advised I can go as high as £125,000.
What values do I enter into online calculators when shopping for rates?
I'm curious as the property I'm interested in is 120,000 but personally I can only afford 74k (lending + deposit), the remainder is picked up by lift.
how do I incorporate this into online calculators etc?
Been approved on open mark lift scheme, advised I can go as high as £125,000.
What values do I enter into online calculators when shopping for rates?
I'm curious as the property I'm interested in is 120,000 but personally I can only afford 74k (lending + deposit), the remainder is picked up by lift.
how do I incorporate this into online calculators etc?
0
Comments
-
I think this is one for a mortgage broker familiar with LIFT as I don't think the online calculators are set up to deal with it.0
-
It's a DIY shared equity scheme.
Use the mortgage amount you will need and the gross value of the property to calculate LTV. Same as done for HTB - Equity Loan.
FWIW most lenders have affordable housing type products for this purpose which go to 75% to take into account the shared equity.
Consult an independent mortgage broker for advice on best lenders/products.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0 -
Its a bit funny, as its not quite shared equity is it? I'm not applying for a loan to form a deposit.
I have 10k deposit already and I have to be able to fun 60% of the intended property, so on 100k property, I only need a mortgage of 50k (10k deposit), and the lift scheme/govn pays the remaining share of 40k.
Would that mean, in applying for quotes online I could type in "value of house 60k..." or "amount wishing to borrow as 50k"
edit:
I tried the above example and i get good quotes, I tried it with the gross value of the property and i get odd ltv and rates of 3.6 to 4.99%0 -
Shared equity is exactly what it is. Shared ownership is what it isn't.
http://www.gov.scot/Topics/Built-Environment/Housing/BuyingSelling/lift/FTBOMSEP
If the property value is £100k and the mortgage is £50k, it's a 50% LTV.
If you are asked to enter the amount you wish to borrow, you enter the amount you wish to borrow. That is not affected by the rest of the funds.
When you enter the purchase price, you enter the full value (LIFT shared equity + deposit + mortgage) to get the correct LTV.I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.5K Banking & Borrowing
- 252.9K Reduce Debt & Boost Income
- 453.3K Spending & Discounts
- 243.5K Work, Benefits & Business
- 598.2K Mortgages, Homes & Bills
- 176.7K Life & Family
- 256.7K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards