FTB Shared Ownership

gianni

Hi all,
I've had a quick look on the forum but can't find anyone who's been in a similar situation but to be fair the volume of traffic on this forum doesn't make that search easy! I have however seen a lot of good advice floating about and wondering if someone can perhaps pass some to me!

Essentially, I've secured a shared ownership deal where I'm going to own 70% of an apartment. The provider is paying a 5% deposit + all legal fees as part of the deal. I have no deposit of my own. I earn £28k a year which will go up in stages to about £45k over the next couple of years. I have a clean credit history and have no o/s debts. I've just asked London & Country to try and find me a deal but is there any other mortgage providers you recommend?

I've just tried a couple including Natwest but they don't offer any mortgages on shared ownership. I've seen anouther one since being Cheshire BS but their rate is 6.60% on a 3 year fixed deal - a bit expensive! I probably want a fixed deal for security of knowing payments will remain the same with daily interest charged and if possible no higher lending charge.

I'm probably asking for to much but does anyone have any views?

Conrad

I'm currently involved with a shared ownership client and I can tell you it was a very hard mortgage to place.

Lenders are risk averse now and consider low / no deposit schemes very high risk. Deposits being paid by providers can be problematic, but not knowing the full datilas of your scheme and exactly who is paying the deposit means I cant comment with any accuracy.

The crucial point about risk hereis whether the deposit is foregone by the provider or whether they will retain some kind of onwership over that money. If a lender repossesses it wants the largest possible sum of equity to act as a cushion. If a thiord party 'owns' that cushion it means the lender is very exposed and will almost certainly make a loss in the current market conditions were they to repossess.

Mac_Sami

Try dealing with HSBC (they don't offer anything through brokers), and Nationwide. I found Nationwide are slightly more geared up for shared ownership, but HSBC also seemed to be on the ball - although they couldn't provide the amount required in my circumstances. Nationwide offer a 6.2% 2 or 3 year fixed at present.

I used London and County, but to be honest found their service poor after an issue with the first mortgage application, and they didn't get me the best deal when I started shopping around myself. That's just my experience, though.

minimike2

Off the top of my head Woolwich offer 100% of share shared ownership schemes as long as you have good credit. Halifax should do it with 5% but not sure if they will accept it with it not being from your own funds. Worth looking into though.

Heopfully L&C will find you the best deal, but it really is a Niche market. Its virtually impossible for people with impaired credit too now that preffered have withdrawn from the market.