Shared Ownership Mortgage

chocolatepennyfarthing

Shared ownership mortgages
Any advice about part repayment and part interest only mortgages would be welcome.!
Son is looking at buying shared ownership property- not actual fugues but along the lines of - property value is £250k he is buying £100k share on repayment mortgage @ 2.4%. Leaving balance of £150k with housing association which he will pay rent on @ 3%... Which is more than the mortgage rate! Son is therefore interested trying to buy more of the property by taking on an interest only mortgage on an extra share. This would mean that he has a larger share in the property, reduces the rent he pays and means he would avoid future legal fees which he would incur as he intends to stair case the property in the future. Instead of stair casing he would just convert the interest only part of the mortgage to repayment as his salary increases over time. Does any one know if these type of mortgages exist?
My son is very lucky to have this opportunity - it just seems daft for him to pay more in rent than mortgage interest particularly as he is keen to own all of the property as soon as he can.!
Any advice would be much appreciated.!

mrginge

Not possible.

csgohan4

chocolatepennyfarthing wrote: »

Shared ownership mortgages
Any advice about part repayment and part interest only mortgages would be welcome.!
Son is looking at buying shared ownership property- not actual fugues but along the lines of - property value is £250k he is buying £100k share on repayment mortgage @ 2.4%. Leaving balance of £150k with housing association which he will pay rent on @ 3%... Which is more than the mortgage rate! Son is therefore interested trying to buy more of the property by taking on an interest only mortgage on an extra share. This would mean that he has a larger share in the property, reduces the rent he pays and means he would avoid future legal fees which he would incur as he intends to stair case the property in the future. Instead of stair casing he would just convert the interest only part of the mortgage to repayment as his salary increases over time. Does any one know if these type of mortgages exist?
My son is very lucky to have this opportunity - it just seems daft for him to pay more in rent than mortgage interest particularly as he is keen to own all of the property as soon as he can.!
Any advice would be much appreciated.!

Shred ownership is a SCAM IMHO and there is more to it than 'it's cheaper than renting'


Search for SO in the forums and research it properly

brit1234

Yes shared ownership is a costly scam with all the extra costs and conditions. Its simply a way to inflate the price for the developers benefit not buyer. Research it on here.

If you do go down this route consider paying off the existing mortgage off 1st before staircasing. It reduces the risks, monthly payments and the extra fees required to staircase.