Shared Ownership Mortgage - Your Thoughts?

Mac_Sami

The best mortgage I can get, after looking online and via a broker, is a 5.99% fixed for 2 years with £299 fee. This allows for overpayments of up to 10% a year of the total mortgage value, with no penalties for moving or extending the mortgage.

I'm keen to go for a tracker or short term fixed so I am not locked into a rate for too long, but long enough that I know what my outgoings are.

It seems the mortgage products available for SO are limited (as expected) - has anyone else recently looked for a SO mortgage and come up with something better?

Thanks.

UK007BullDog

Lenders are pulling out of SO.

You need to ask yourself that if you were to sell in the near future who would be able to buy if hardly any lenders offer mortgages?

If it is a new build flat I suggest you fix yourself 3 to 5 years. New build flats lose value currently and you could have issues trying to remortgage, plus when you do the costs you might incur are product fees and maybe legal fees as the housing association might be involved as well.

If you go for a tracker you will not be able to budget if the rates go up again. If you want to budget and know exactly what you are paying you should fix.

Good Luck!

r2mahara

Try the Halifax - I have a SO Mortgage with them coming to a close.

They offered about 5.8% for a remortgage, but that was probably because I am already with them.

Not sure if you can ask them to give you this rate.

My IFA says that for SO, I'm basically stuck with Halifax. I'm keen to see if this is true.

UK007BullDog

Yes, that is true as a lot of lenders pulled out of SO. Leeds might still do it. A lot of High street lenders never got on the bandwagon. Now with the credit crunch another few lenders have pulled the plug. I was never a fan of SO anyway as I found the whole scheme too risky. What if you could not sell them ever unless one buys the whole share and then cannot sell on the open market. Hmmmm.....

Mac_Sami

Thanks - the mortgage I've quoted is from the Halifax, and seems to be the best I've found so far... unless there's any other suggestions from other people?