Remortgage on a shared ownership

Jonathan_Powell

Hi all

Asking for a friend. They own 50% of a property valued at £350k (the value of the entire property. Their mortgage deal is up soon and they have around £88,000 outstanding. When doing a remortgage, can they just throw in the above stats into a comparison site or are their specific products when remortgaging on a shared ownership property?

haras_n0sirrah

Hi. I am a shared ownership mortgage specialist and have been for 12 years (my former username was haras_nosirrah but I lost it in the change over if you want to look up my posting history)

With shared ownership it is only certain lenders, it is based on the share not the whole market value and also we always run a full cost comparison against their existing lender offering as remortgage solicitors charge more for shared ownership and the housing association will also have charges they pass on e.g £100 to give consent to remortgage and approve the offer.
If factoring in everything it is still cheaper to switch we would change lender. If it is better to product transfer with their existing lender we would do that for them at no cost.
It certainly isn't as simple as choosing a mortgage from a comparison site.

Whats_your_forte

You may find staying with the same lender is a better option.

By the time you add in the costs of remortgaging (including a deed release fee from the current lender) as well as the additional solicitors fees as mentioned, then on a mortgage of £88,000, staying with the same lender may be a better option even if they are say 0.2-0.3% out on the rate.

All brokers can look at Shared Ownership mortgages as it is simply a part of criteria so your friend doesn't have to look for anything in particular from the broker apart from a good reputation