Mortgages for new build shared ownership

johnnyham

Hello!

I have arranged to purchase 70% equity in a new build shared ownership property (the remaining 30% is owned by a Housing Association, to whom I will pay a subsidised rent).

I am a first-time buyer and have been using London & Country following friends' recommendations.

L&C have recommended a 2 years fixed mortgage with Leeds Building Society at 3.99% (no product fees). However, I am unable to ascertain if this represents good value as most online mortgage calculators do not seems to cater of new build + shared ownership scenarios.

L&C have indicated that Leeds Building Society are one of the very few lenders who provide mortgages for new build shared ownership properties.

Might someone be able to give me some guidance on this?

FYI - The overall property value is 190k. I am looking to purchase 70% (133k) and have a 10% desposit i.e. £13,3000

With thanks in advance for any guidance you may be able to provide.

usefulmale

Avoid the Leeds unless you thrive on stress and hassle. We got a mortgage for our new-build shared ownership with Nationwide.

kingstreet

usefulmale wrote: »

Avoid the Leeds unless you thrive on stress and hassle. We got a mortgage for our new-build shared ownership with Nationwide.

Only under 85% LTV on a newbuild house.

Leeds is one of a handful of lenders offering upto 95% and its rates are the lowest available for such cases.

usefulmale

kingstreet wrote: »

Only under 85% LTV on a newbuild house.

Leeds is one of a handful of lenders offering upto 95% and its rates are the lowest available for such cases.

Yes, that is true but it is pointless offering up to 95% if they are just going to give you the run-around for 6 months, like they did with us, so that the Housing Association get bored waiting for you and offer the house to someone else.

Anzhelka

usefulmale wrote: »

Avoid the Leeds unless you thrive on stress and hassle. We got a mortgage for our new-build shared ownership with Nationwide.

We have shared ownership with Leeds and it went fine. just took a while, asking for more and more documents, but otherwise we are happy with everything. also 3.99% interest rate and £99 product fee.

19carlymarie88

We used Leeds for our Shared Ownership (purchased 50% share of £190k flat) at 95% LTV....pretty sure it was 3.99% 3 year fixed.


Unfortunately as we only had a small deposit we were limited to Leeds. They did want the world and its wife for the mortgage application (including why you went into your overdraft EACH time on the copies of bank statements you submitted!) but if you are straight and have nothing dodgy going on you should be fine.


Ours only took longer as we changed properties after the mortgage offer.

Verix

As above, Leeds offer good rates but a difficult process. Just be prepared and have every document you can think of ready to send to your broker at a moment's notice :P