Are Shared Ownership mortgage rates higher?

mummytofour

Hi,
I'm looking at purchasing a shared ownership property and wonder if anybody could give me some idea of the rates payable. I know when I was talking to my broker about an open market purchase, he was saying rates were up to 2.6% (for my situation) but I seem to recall something from the past that SO rates are higher. Is this the case?

Thank you for your help 😃

kingstreet

Not necessarily.

It depends on the type and loan to value.

For example, you'll pay 'normal' rates for 80%, but higher rates on a 95% newbuild as there is a smaller pool of lenders for such business.

h240

I wouldn’t say so, depends who you go through as our broker got us a good rate with a bank for our shared ownership mortgage

haras_nosirrah

some lenders have special rates specifically for shared ownership which may be higher than their standard range - other lenders allow access to their mainstream range - it really does vary depending on the lender