Shared owner ship amd Mortgages

leb2005

Hi
My partner and I are looking into shared ownership as we can not afford to buy a property at full price ( oxfordshire too expensive)
Does anyone have any experiences with this, i have heard that there is not many Places that give mortgages to people who are into Shared owner ship, is this correct.
thanks in Advance

herbiesjp

There are plenty of lender that offer shared ownership mortgages - most will want a deposit (5% of the share you are looking to buy). However there are some that will offer 100% of the share you are looking to buy

huskypup

Herbie

Can you tell us which ones, I have been told by my broker that there are lots that deal in shared ownerships, but most only deal with the key workers and those buying through housing associations, the only one that we can find that deal with open market for anyone is Advantage (morgan stanley). As I am also having to buy this way.

herbiesjp

huskypup wrote: »

Herbie

Can you tell us which ones, I have been told by my broker that there are lots that deal in shared ownerships, but most only deal with the key workers and those buying through housing associations, the only one that we can find that deal with open market for anyone is Advantage (morgan stanley). As I am also having to buy this way.

The Open Market (Homebuy) scheme is different

This link might help:

http://www.housingcorp.gov.uk/server/show/ConWebDoc.8662

huskypup

Thank you herbie, I am abit stuck, I would like to buy and choose my own house I am now seperated and the only way for me to able to buy/afford is through shared ownership, because of graphical location of my job I need to stay in the village that I currently live (ie we have no public transport to where I work). My current house will be sold and assetts divided 50/50.

Even though I am a civil servant and work for the MOD I am not classed as a key worker, I don't live in a house owned by housing association and there are no housing association houses in our village that are empty that I could apply for, rent in this village is about £750 pcm (private), I earn £23900.(two jobs).

So shared ownership of some sort seems to be my only option. Is my only option through Advantage or are there other lenders who offer similar schemes (not goverment backed ones as I don't qualify).

Any advice is appreciated.

shagtasticshaz

huskypup wrote: »

Thank you herbie, I am abit stuck, I would like to buy and choose my own house I am now seperated and the only way for me to able to buy/afford is through shared ownership, because of graphical location of my job I need to stay in the village that I currently live (ie we have no public transport to where I work). My current house will be sold and assetts divided 50/50.

Even though I am a civil servant and work for the MOD I am not classed as a key worker, I don't live in a house owned by housing association and there are no housing association houses in our village that are empty that I could apply for, rent in this village is about £750 pcm (private), I earn £23900.(two jobs).

So shared ownership of some sort seems to be my only option. Is my only option through Advantage or are there other lenders who offer similar schemes (not goverment backed ones as I don't qualify).

Any advice is appreciated.

hi there,

nyself and my husband bought our house with a key worker mortgage almost 3 years ago and they basically give you 25% of the mortgage as a 'gifted deposit' repayable when you sell the house but you pay it back at 25% of the current market value. I am a key worker as i work for the police and i was living in a housing association house but i could still have applied even if i was neither of these 'qualifiers'. I was told they have a budget each year usually starting in april and its first come first served although not sure if key workers get any preferential treatment.

It helped us get on the property ladder and they do not own any part of the property but they still have a say in financial asoects of the house. For example, we cant get a secured loan on the house as the housing association has 2nd charge..although thats not really a bad thing...but we cant get any kind of advance on our mortgage without the HA authority and if we did it can only be for home improvements and with their consent. we are seriously looking at paying off their 25% when we remortgage next year as we do have a lot of equity now.

good luck


shaz

just editted to say that you don't haveto choose a housing assoc house to buy, you can buy any house on the open market. They ask about you personal details, how many kids you ahve etc then tell you what you are eligble for and what price range for the area you want. When i was buying i had 2 kids at the time and they told me i could go for a 3 bed house upto £160000 which was ample for the area i wanted to live in

herbiesjp

huskypup wrote: »

Thank you herbie, I am abit stuck, I would like to buy and choose my own house I am now seperated and the only way for me to able to buy/afford is through shared ownership, because of graphical location of my job I need to stay in the village that I currently live (ie we have no public transport to where I work). My current house will be sold and assetts divided 50/50.

Even though I am a civil servant and work for the MOD I am not classed as a key worker, I don't live in a house owned by housing association and there are no housing association houses in our village that are empty that I could apply for, rent in this village is about £750 pcm (private), I earn £23900.(two jobs).

So shared ownership of some sort seems to be my only option. Is my only option through Advantage or are there other lenders who offer similar schemes (not goverment backed ones as I don't qualify).

Any advice is appreciated.

Most high street lenders will be able to offer shared ownership schemes

YOu need to apply to the housing association first, confirm eligibility, and then they normally want a copy of an agreement in principle

huskypup

I have spoken to a homebuy agent and even though I am a MOD civil servant I do not qualify for any schemes, so can not be backed by the government or by a housing association, if I worked for the local council or police etc, I would qualify it really is unfair, a civil servant in the same area is a civil servant.

Looks like advantage are the only way for me to go, would have preffered a high street lender but they need someone to back the other part, whereas Advantage do not discriminate to who they lend to and are big enough to fund the other part themselves through a low interest loan rather than rent.

If anyone has any other suggestions please can they post here.

julief

Hi

Try www.homebuy.co.uk I spoke to them yesterday and you choose a house on the open market and they pay 25% (I assume you have to pay them rent on this) and get a mortgage for the rest, dont have any more details at the moment as I am waiting for details to come through.

You dont need to be a key worker (i'm not) I already have a shared ownership mortgage with a local housing association, but homebuy said that as long as I sold that house to buy another and didnt have 2 mortgages that it would be fine (subject to finances!)

Will let you know when the details come through and if there are any clauses, exceptions.

Julie

Moggett

High Street names that would do this include Woolwich, Abbey and Halifax although you're probably best going through a non fee charging mortgage broker.

Good Luck!

laurawaite

have you tried preferred mortgages or blemain finance? i'm not 100% sure they would be able to help and they are higher interest but might be worth a go if you are stuck. good luck!