Shared Ownership Mortgage for FTB

Rebecca5833

Hi

Me and my partner have just reserved a shared ownership property, the share is £82,500 and these are the rates we have been offered so far, are they any good? we literally have no idea what sort of rates we should be looking at with shared ownership. I have been advised as i work in a risky job with redundancies coming up soon, one mortgage broker has advised to reapply after i find out, could this help us get a slightly better rate and also with the lock down potentially ending next month, should we hold off for 2 months?

3.19% fixed until 31/07/2022 £315.93 per month (including lender’s arrangement fee of £1,499*)
3.85% fixed until 31/07/2023 £344.34 per month (including lender’s arrangement fee of £999*)
4.10% fixed until 31/07/2025 £356.22 per month (including lender’s arrangement fee of £999*)

Many thanks for any replies

Rebecca

Lorenzo94

They are very high. I'm buying a shared ownership flat as well (30% share for £144,750) and I am putting down 15% deposit and I am being offered 1.79% fixed until 31/08/2022. I think it all depends on how much deposit you can get.

ChloeManoey

Yes they seem very high to me, but it depends what size deposit you are putting down. If it's a small deposit then you aren't going to be able to get the best rates  

I'm buying a 45% share for £110k, with a 30% deposit and have a rate of 1.89 fixed for 2 years. I did take this out a few months ago and rates have fallen since. No arrangement fee. 

haras_n0sirrah

I can tell from what you have put that you have a 5% deposit - that is the rates at the moment as it is a very restricted market at that loan to value. The 3.19% one though I can see is fee free so not sure where the 1499 comes in

haras_n0sirrah

have just spotted it - those are all leeds rates. There is another lender who has 3.19% but no fee. Not sure if open to all brokers so worth investigating. On an 82500 share I would question why you are having the mortgage with fees that high. I am a shared ownership mortgage specilalist and it rarely works out having fee based products at your mortgage level. 

Rebecca5833

Many thanks for your replies, we was going to have 5% deposit but will have to up it if needed to. I have just received an email from the housing association with an offer letter and it states this 

This offer is subject to contracts being exchanged by 21 July or within 10 working days of a mortgage offer being received by your solicitor, whichever date is earliest

i assume this means we won’t have time to shop around, I have appointments for mortgages at the end of this month and I am still waiting to hear if I am being made redundant as I work for an airline and I even told the lady from the housing association so she knows? 

At the viewing she said once we reserved it, was no problem when we moved in. Or is this normal for them to try and hurry us up? 

Many thanks

Rebecca 

haras_n0sirrah

I don't think those rates sound like the best for your circumstances and the redundancy is concerning
I wouldn't proceed until you know what is happening with your job as it is expensive to pull out of a property once the legals have started

Lorenzo94

Rebecca5833 said:

Many thanks for your replies, we was going to have 5% deposit but will have to up it if needed to. I have just received an email from the housing association with an offer letter and it states this 

This offer is subject to contracts being exchanged by 21 July or within 10 working days of a mortgage offer being received by your solicitor, whichever date is earliest

i assume this means we won’t have time to shop around, I have appointments for mortgages at the end of this month and I am still waiting to hear if I am being made redundant as I work for an airline and I even told the lady from the housing association so she knows? 

At the viewing she said once we reserved it, was no problem when we moved in. Or is this normal for them to try and hurry us up? 

Many thanks

Rebecca 

Also don't get scared by their pushy emails. When I reserved my flat in April (right before the lockdown) they expected me to complete by April 24 if I remember well. Those are just pre-set emails. They will be understanding about the current climate and give you more time. Just speak to them and see what they say.

Rebecca5833

haras_n0sirrah said:

I don't think those rates sound like the best for your circumstances and the redundancy is concerning
I wouldn't proceed until you know what is happening with your job as it is expensive to pull out of a property once the legals have started

thank you for your reply, me and my partner earn around £62,000 a year, we did look at the normal help to buy but we are awful at saving. I have also got a part time job as I have just finished maternity and currently on furlough from my regular employer. Luckily just my partners wage qualifies for the mortgage. I have got a few appointments with other brokers, so hopefully can get a slightly better rate. Also is it easy to remortgage with the shared ownership?

haras_n0sirrah

I am a shared ownership mortgage specialist and have been for 14 years and probably write 20 shared ownership mortgages a month. I don't see why you would be looking at those rates. Even if leeds is your best option I am doubtful it is worth paying the 1499 fee on that size mortgage. 

Rebecca5833

haras_n0sirrah said:

I am a shared ownership mortgage specialist and have been for 14 years and probably write 20 shared ownership mortgages a month. I don't see why you would be looking at those rates. Even if leeds is your best option I am doubtful it is worth paying the 1499 fee on that size mortgage. 

we don't seem to be having much luck, I am trying to see if my partner can get a mortgage just with him, but we are needing 15% deposit, does this seem about right? Will I be able to get an extension or is the date the housing association give is the final date to exchange contracts. Also Is covid19 the reason why lenders are not accepting 5% deposits at the moment? When is it expected to calm down with the high deposits?

Rebecca