Shared Ownership - Fixed rate ending - HELP!

sweettirana

Hi All,

I currently own 25% of a shared ownership property (the rest being owned by the local Housing Association).

Im on a fixed rate mortgage which ends in August and then goes onto an 8.4%(!) variable rate.

I've searched the internet high and low and I cant seem to find anything on the subject...what I want to know is...can I change mortgage providers if I am shared ownership to get a new fixed rate deal? And does anybody know what lenders will do this? Im with Leeds at the moment.

Im thinking about moving in about 2 years time as i dont like the area here (but hey, it got me on the ladder ) if i cant get another fixed rate mortgage I think I will probably be better off moving as my fixed rate is 4.9 at the moment so if it goes up to 8.4 I think it will be the shock of my life! i'd be better off, me reckons, putting that money into another property!

Any advice welcome!

:beer:

mpsavuk

sweettirana wrote: »

Hi All,

I currently own 25% of a shared ownership property (the rest being owned by the local Housing Association).

Im on a fixed rate mortgage which ends in August and then goes onto an 8.4%(!) variable rate.

I've searched the internet high and low and I cant seem to find anything on the subject...what I want to know is...can I change mortgage providers if I am shared ownership to get a new fixed rate deal? And does anybody know what lenders will do this? Im with Leeds at the moment.

Im thinking about moving in about 2 years time as i dont like the area here (but hey, it got me on the ladder ) if i cant get another fixed rate mortgage I think I will probably be better off moving as my fixed rate is 4.9 at the moment so if it goes up to 8.4 I think it will be the shock of my life! i'd be better off, me reckons, putting that money into another property!

Any advice welcome!

:beer:

Wel, of course, you'll have to sell your 25% share to somebody before you know how much equity you get out of it to put towards another property.

As for your mortgage i'm sure the knowledgable brokers on here will know lots about it but perhaps you can try the Yorkshire BS?

Or the Kent Reliance?

They both were offering deals for shared ownership if i recall correctly.

And also do you have to get permission from your Housing agent before you go changing?

But with only 25% share i would have thought someone can stump up some cash for a good deal for you.

Good luck with it anyway.

sweettirana

Hi there,

Thanks for your reply!

I've tried ringing the housing association and they are absolutely useless when it comes to advice. If I was to move I think i have to sell it to another first time buyer so they will buy a % - probably the same amount as mine. As for equity, I dont anticipate that the price of the flat has gone up very much, maybe £10K at best which I will only get 25% off! I'm not counting on there being any equity, so any that there is will be a nice bonus

I'll contact the mortgage providers that you said and see if they will offer me deal - anything has to be better than 8.4%!

At the moment Im paying £750 a month including the rent thatI pay to the HA, when it goes up Im anticipating it being about £1k altogether - which I could buy another (albeit slightly smaller, or one further away) flat which will be all mine (except for the 23 odd years worth of mortgage repayments that i will owe someone lol!)

Shared ownership is far more hassle than it is worth!

:beer:

izoomzoom

Our SO remortgage is up for renewal at the end of September, so this is something that I am starting to worry about.

We are with Ipswich Building Society, and are on a fixed rate of 5.75%, but according to their website, their new fixed rate (at the mo) is 7.24%. Is the 8.4% rate you mention Leed's variable rate, or what they are currently selling SO fixed rates at ?

sweettirana

izoomzoom wrote: »

Our SO remortgage is up for renewal at the end of September, so this is something that I am starting to worry about.

We are with Ipswich Building Society, and are on a fixed rate of 5.75%, but according to their website, their new fixed rate (at the mo) is 7.24%. Is the 8.4% rate you mention Leed's variable rate, or what they are currently selling SO fixed rates at ?

8.4% is the rate that Leeds said I would go on when my fixed ends. I think that is there standard variable (although it seems a bit high to me, but us SOer's can never seem to get a good deal!)

I dont mind so much what my fixed rate goes up to if I can get a re-mortgage even if goes to 6.5% or so, I just want to know what Im paying every month and i dont want to pay 8.4% (EXTORTION!).

It is so hard to find SO mortgages and I dont know how easy it will be - It was a living nightmare trying to buy the place in the first place!

izoomzoom

I agree that with SO you don't seem to be able to get very competitive rates, and buying / selling them are PROBLEMATIC.

Does any one know if homebuy and shared ownership are viewed as the same by lenders, because often I can't find anything about shared ownership rates, but I do find rates for the homebuy scheme.

If anyone can advise of other lenders, not already mentioned, whom we could scout out about remortgaging. I will use my broker again, but it can't hurt to have an idea of what rates are likely.