Help Needed: Shared Ownership & Preferred Mortgages

FranBrowne

Hi all,

I really hope someone can help!!

Myself and my husband are buying a 50% share of a shared owneship property with a mortgage arranged through Preferred Mortgages. We were 2 days away from completion last week, and Preferred came back saying they had realised now that we couldn't have a mortgage after all, and it turns out that a letter was written to our solicitor from a girl at the mortgage company confirming they were happy to procced, but this had never been checked by their legal dept.

Their issue is that we are buying the house for 75% of market value, so when we come to sell, there will be a restriction on the title to say that we cannot sell for more than 75% of the market value.

This has been going on since Wednesday and what with the bank holiday, we are still none the wiser and living in a half packed house.

Has anyone else had a similar problem or can you help at all?

Many thanks!!

terese

Stay away from Preferred Mortgages they are no good when it comes on to shared ownership. They had me waiting for 4 months for an offer which should have taken 3 weeks, while they were asking for some silly letter or documents every 3 weeks.

Try Leeds BS I had my offer in 7 working days.

Speak to your Housing association as well, ask them to give you more time, they are normally quite lenient

My completion date should have been May 22 but I finally will be moving on the 31st of august.

homer_j_3

FranBrowne wrote: »

Hi all,

Their issue is that we are buying the house for 75% of market value, so when we come to sell, there will be a restriction on the title to say that we cannot sell for more than 75% of the market value.

This has been going on since Wednesday and what with the bank holiday, we are still none the wiser and living in a half packed house.

Has anyone else had a similar problem or can you help at all?

Many thanks!!

This seems very daft to me. Any shared ownership property works this way. If you want to sell, you sell the share you own. The debt is on this bit so its all relevant.

Preferred should only be used if you have credit problems in a shared ownership scenario.

There are other lenders that can be used- do you have a deposit to put down?

FranBrowne

Thanks for the quick replies!

Terese- we had had a few credit problems, nothing too bad, but that's why our mortgage broker advised us to go through Preferred.

Homer_j- we don't have a deposit, so looking for a 100% mortgage. We've not really got severe credit problems, my husband has had a default and we've had a few silly things a few years ago like late payments on cards, but nothing recent really.

Also, I think this is slightly different to most shared ownership- most you can staircase to 100% and you pay 100% of market value, but this we would only ever pay 75% OMV, which is where Preferred are getting confused. We have tried explaining this to them and they think a mortgage protection clause should/could protect them if the house were to be repossessed for example, but still waiting to hear back....and we should have spent this bank holiday moving house!!!

homer_j_3

Leeds will offer 100% and may consider your credit history but I guess they will want to do a credit check before confirming anything for definite.

I see what you mean with staircasing and I guess it is something that the solicitor should have checked out and forewarned you that it may be a problem but its no good trying to work out how it should have happened.

See what they come back with and I hope that it all works out OK. Afterall an extra week may be very inconsequential once you are in.

FranBrowne

Thanks Homer_j.

Still no news!

Can any one else help at all? Have you been in a similar situation?

MrsTom

I got my mortgage for my shared ownership property through HSBC. Neither mine nor my Husbands credit history was good and we got accepted no problem - in fact it all seemed too easy!

When we applied for our mortgage we didn't say that we had any financial problmes and crossed our fingers and they came through for us.

Good Luck

FranBrowne

Hi Mrs Tom, thanks for that. We got a managed loan from HSBC less than a year ago, and they won't lend within that time....could try Barclays though I guess.

Can anyone else recommend any mortgage co's for 100% mortgages with not so perfect credit? My latest thought may be to apply in my name only, as my husband's credit it worse and he's also now self employed, which probably doesn't help!

I "still" have not heard back about this from Preferred, has anyone been in the same position as me and had them make a big mistake like this? I called them today and they refused to speak to me!!

Thanks all!

Moaning Minnie:o