Shared Ownership Mortgage Problems

Claire_F

Hey all just abit of advice

i'm a first time buyer trying to get a shared ownership mortgage
i've tried the usual high street banks and using their calculators i am able to get an AIP for a value at least 10-15k more than i need
but when i go into the branch and actually try to apply the amount they can give me is 25k less than i need

the main difference seems to be selecting shared ownership
with income and outgoing remaining exactly the same "ticking the shared ownership" box reduces the amount by 30k

i can afford the mortgage the Housing Association did their own affordability checks and approved me with the rent + mortgage only taking up 45% of my take home
i have no children or credit cards/loans

if the high street banks wont help what are my options can anyone recommend other types of lenders or should i hire a broker?

ad2

Definitely go through a mortgage broker. They have access to more SO lenders plus the normal high street ones. We are currently going through a FA for a SO Halifax Mortgage

Claire_F

i just hope the broker can find someone to make up for the 19k difference

jack290292

Have sent you a PM

mummytofour

I just played with the Halifax calculater and the figures were 11k less for me in SO. I'm suprised that's all it was! The loss of availability is due to the calculater taking rent into consideration as an expenditure. Fingers crossed you get it sorted soon x

h240

Hi, we’ve just got our mortgage approved for shared ownership with Barclays on a newbuild having a 50% share on the property. We went through a broker who was really really helpful, I would highly recommend a broker x

hurtloam

Hi h240


How long did it take to get approval from Barclays? I have already been rejected by Nationwide due to the terms of the shared ownership sale. Got messed around by Santander. Trying Barclays now and I'm wondering how long it will take.

h240

To be honest it took a while through the broker but hey gathered all the necessary info to do the application, then within a week we were told mortgage had been approved subject to valuation the valuation bit took forever, we had to chase the surveyors in the end- they seemed extremely slow. House got valued a week ago and meltgage offer has been finally sent out to us. Took a month all together to get the offer.

h240

Sorry for the spelling errors was typing really quick!

haras_nosirrah

I am a broker who specialises in shared ownership and does assessments for a housing association in london.

When looking at the affordability calculators on lenders websites make sure you include the rent and service charge as a commitment even if it doesn't specifically request it. It does make a difference to the amounts leant as the rent is factored into the commitments and deducted from your income.

Lenders lend different amounts - some are more generous than others. A broker would generally be the best way to get an idea of the whole market place and who will lend the most.

Claire_F

i am having a nightmare.... ive tried various lenders and i while i can get a higher amount i am still 3-4k short

i am thinking i might need to go back to the EA and tell them i am unable to secure a mortgage at the asking price so i need to reduce my offer
it wont be a huge reduction only 4-5k less on a 265k flat @ 50% ownership

think its worth asking or am i bang out of order

just a shame the AIPs are so inaccurate and i did include the SA rent and service charge in my calculations