First time buyers/shared ownership questions

tedtheviking

Hi all

Have had a search but can't find any threads that answer our questions so sorry if this is the wrong area/there is some overlap.

We had an offer accepted on a shared ownership flat buying 30% last Wednesday. We have a solicitor we would like to use and have spoken to L&C who have recommended a Leeds Building Society mortgage. We seem to be quite limited in choice as it is a shared ownership mortgage and we only have a 5% deposit.

First, could anyone advise on what our next steps should be? Should we instruct a solicitor before we have an agreement in principle or vice versa? We have read the first time buyers guide but not sure how much this would differ with it being shared ownership.

Previous threads about Leeds Building Society seem to be a mixed bag - does anyone have some more up to date experiences with them? Their mortgage seems to tick all of our boxes and we seem to have a limited pool anyway. Are there any hidden charges with them? They say there are no fees and they offer a free valuation but we don't want to get caught out.

We have also made enquiries with Metro Finance - they say they specialise in shared ownership - has anyone had any experience either way with them?

Thanks in advance

haras_nosirrah

Hi

I specialise in shared ownership mortgages and do affordability for housing associations

there are 3 lenders who do 5% deposit. the main one is leeds, there is kent reliance who are for more credit impaired clients and newbury who are only in certain postcodes. If you have a 5% deposit then leeds is the best option especially if you are not in the postcode area for newbury. The biggest headache with leeds is if they cannot track you online they need proof of residency every year for the last 3 years at your declared address. They are generally ok though

How far away are you from 10%? The rates drop by about 1.5% if you can get to a 10% deposit and one of the lenders at 10% deposit is doing free valuation and £500 cashback as well. You will need about 2k to cover moving costs if your share is under 125k

tedtheviking

Thanks for your reply, that is really helpful. Would Metro Finance just also be sending us to Leeds then? If so we will look to start the process with Leeds tomorrow morning as we'd like to get the ball rolling.

We have just enough for a 5% deposit at the moment and have been looking for a shared ownership property in a specific development so although we are likely to be in a position to have more money in a few months (likely inheritance), we just aren't there at the moment.

We are at a position where we are ready to instruct solicitors - should we be doing this before firming up the Leeds offer?

Thanks again.

haras_nosirrah

chances are unless you are in a postcode newbury lend in (you can check their website) then it will be leeds