Shared ownership remortgage minefield

mrshvc

Can anyone give their experiences or advice on remortgaging a shared ownership property?

I currently own 35 per cent of my home in a mortgage in my name only and want to buy more shares (which is possible with our HA) and add my partner onto the mortgage.

Any best rates/providers/deals?

Silly question but could my partner take out a second mortgage from the same lender so we both have a mortgage each on the property to try and buy more of the property?

The fees involved are crazy - for starters I have to pay for valuation by the HA AND by the mortgage provider and if they differ the mortgage provider will only lend based on their valuation anyway, so what is the point paying for two?

It's supposed to be affordable but I am finding it is anything but! The interest rates on shared ownership mortgages are at least 2 per cent higher than others too.

Wondering whether I should just get a loan to buy some more shares...would be cheaper!

:mad:

tkel01

im currently purchasing a shared ownership property and my broker said barclays do the best rates for SA. we couldnt go with them because on new builds they want a big deposit, but if you have decent equity you should be fine

mrshvc

Thank you and good luck with your purchase!

haras_nosirrah

I specialise in shared ownership and am recommended by a housing association.

you will have to pay for the staircase valuation - these seem to be around £250

remortgage valuations are usually free as part of a lenders remortgage package

best lenders vary depending on your circumstances- they lend different amounts and accept different incomes so best see a broker if you aren't confident in it. apart from one or two lenders most offer their standard range for shared ownership so the rates shouldn't be higher.

if you are staircasing you will also have a solicitor. you will probably need to budget about 2k if staircasing to include all fees and stamp duty will be payable if buying more than 80% of the property.

you can't each own a share - you would need to get a joint mortgage.

mrshvc

This is super helpful. Thank you. Hadn't accounted for stamp duty. Yikes!

Our current provider have said we would need to pay for a valuation by them so already looking at around £500 to just get the property valued.

Would dearly love to own more of our home, but looks like it will be unaffordable to do so right now.

Maybe I should just look to get a better deal on the current mortgage or release some of the equity in our existing share? Lots to think about...

Lunchbox

We’re currently remortgaging ours. As long as you have a good LTV, there are a number of high street lenders offering their regular products on Shared Ownership properties, so rates are no higher.

mrshvc

That's good to know. Can you let me know which high street lenders they are so I can get in touch with them to see what deals there are? Good luck with the remortgage!

haras_nosirrah

clearly your current lender is halifax - there are better rates around than they are currently offering. see a broker who knows this scheme to go through the figures and make a decision from there. No one on this forum should be recommending lenders as that constitutes advice and no one knows anything about you to enable them to give advice.

stark994

I'm considering either staircasing or re-mortaging..

Apparently my mortgage broker said you need to go through a solicitors to re-mortage is that true?

kingstreet

Yes. To handle the transfers of funds and remove and register the old and new charges over the property.

stark994

Wow.. I never knew that! How much does it roughly cost?

My previous solicitors quoted about £900 to staircase.