First time buyer/shared ownership. What to do?

intacted

I found an apartment of full value of 230k and as this is a resale flat I am forced to buy exactly the same share as current owner (60% for 138k) As i got some savings i decided to put down 50% deposit on that share (£69k). My credit rating is excellent so I do not think it will be hard to secure a mortgage, I found one fixed for 5yrs at 2.09% from Nationwide. As the mortgage is small I want to repay it in 10 years. Is the deal good you think? Will I be able to buy more shares during that fixed term of 5 years, will I be forced to rely on the same lender to lend me more money or can I take another mortgage, secured against the share that I already have?

intacted

Nice, no one cares to reply I see, not a single mortgage broker in sight?

System

I'm just replying to be nice! havent a clue what the answer is sorry! £230k for a flat is a lot of money and you're only getting 60% of it... is that London prices? couldn't you get something elsewhere where you get the full ownership to save the hassle of more mortgages.

haras_nosirrah

Hi. I am a mortgage advisor who specialises in shared ownership and has done for 10 years. Without doing a fact find we wouldn't be able to say whether it is the best thing to do. Nationwide do have good rates but as for the 5 year and term of the mortgage I don't know enough about your circumstances to advise so wouldn't be allowed to

To answer some of your questions yes you would have to stay with the same lender if staircasing within 5 yrs or pay the penalty. Also you would be subject to the additional borrowing criteria. One of the questions I ask my clients is are you planning on staircasing and what kind of timescale so as to not tie in longer than their planned staircase time

intacted

Why thank you for replying , and yes the flat is within Greater London and trust me that is dirt cheap,
most of them are at least twice as expensive, in it mental over here.

tessiesmummy wrote: »

I'm just replying to be nice! havent a clue what the answer is sorry! £230k for a flat is a lot of money and you're only getting 60% of it... is that London prices? couldn't you get something elsewhere where you get the full ownership to save the hassle of more mortgages.

intacted

Thank you for taking you time to reply, but I do not assume that Nationwide would make propbelms if I wanted to borrow more, and lets say extend my mortgage to another 10 years. Or would that be difficult you think?