Second mortgage for shared ownership (when staircasing to 100%)

Hello all,
We would like to get an advice regarding to getting secong mortgage for the remaining shares so we can staircase to 100% (when it becomes freehold). Currently we have a mortgage for 60% of shares with West Brom at favourable rate of 3.66%. However West Brom is suggesting that we won't be able to keep this part of mortgage because it is a shared ownership mortgage and we have to take second part mortgage for remaining shares but both will be at 4.9% interest rate.
West Brom is suggesting because the first part of mortgage is the shared ownership mortgage and once staircased to 100% we no longer will be shared owners therefore we can't keep this one. Can anybody advise please?

Comments

  • kingstreet
    kingstreet Posts: 39,218 Forumite
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    If by second mortgage you mean second charge, the rate will be a lot higher than high street residential mortgage rates. Seek advice from a broker who can establish your options and speak to someone at WBBS a bit higher up the food chain.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
  • amnblog
    amnblog Posts: 12,698 Forumite
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    WestBrom are saying that if you want borrowing to own the property outright they will not continue to offer the current 3.66% rate.

    I imagine their terms state this as it is a 'shared ownership' product. How much longer does the rate run? Is it worth waiting until the rate runs out anyway?
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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