shared ownership re-mortgage

vejo36

Hi everyone,
May I explain my situation and seek your experience and advice.
I own a 25% share of a housing association house.I have a repayment mortgage
on which I owe £11000.I also have an outstanding loan of £5000.I wanted to re-mortgage my share to pay off the loan,the rationale being I could reduce my monthly payments from (£85 mortgage+£107 loan)£192 a month to approx. £150
a month mortgage only,plus reducing the repayment time from 17 years to 12 years.Both mortgage and loan are with Nationwide and the loan is unsecured.I approached Nationwide but they would not entertain it saying only being a part owner was the reason why!Is it a good idea in the first place?are nationwide being unreasonable?and if it is a good idea can anyone recommend any shared ownership friendly banks or building societies? Phew so many questions for a first post!Current value of 25% share approx £35000 my income approx.£16000 credit rating good I believe.Thanks in advance, Steve.

PhilCCFC

Hi Steve,

Leeds & Holbeck Building Society will remortgage a shared ownership property. Thinks they only allow multiples of 25%, so if you currently own a 25% share, you would need to remortgage to buy a total 50% share. Give Moneysupermarket a call on 0845 345 5700 or go on https://www.moneysupermarket.co.uk and they should be able to help you out.

vejo36

Thanks Phil,
Sorry it took a while to reply.Don't want to purchase a bigger share
at the moment so i'm looking into moving my loan.Was a bit annoyed with my building society I can't understand their rationale as to why they wouldn't allow me to combine the two then all the money would be secured never mind good advice anyway thanks for your time. Cheers Steve

Fairdo_2

The reason Lenders won't consolidate existing loans onto the new first charge without you "staircasing" (buying an additional share of your home) is that they will be increasing their risk on the first charge that they take over and they do not like increasing their risk unnecessarily (in their eyes).

vejo36

Thank you Fairdo,
still don't quite understand as the mortgage and loan are both with the same building society.Combining the two would have saved me money and cut my repayment time.The value of my share is at least double the amount of the loan and mortgage.In the future when I buy another share of the house or another property outright I would of used the society again but now will go elsewhere as I can't see what risk they are actually taking. Thanks for your advice and taking the time to reply. Steve