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

Prettyfly

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?

kingstreet

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.

amnblog

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?