Shared Ownership mortgages

Aminah_2

I bought my flat approx 2 years ago on a shared ownership scheme, the price then was £150,000 and I bought 40% of this, paying 100% on Stamp Duty and 5% deposit.

The first 2 yrs my mortgage was with Abbey fixed. At the end of that term, Abbey gave me another offer fixed for 5 years (ends 2012) (early repayment charge of £2,999.34!).

I now want to buy the remaining 60% of the share of my flat. Have paid valuation fees of £176 and the new value is £160,000. It makes more sense to own the flat 100% so that I dont have to pay rent,mortgage etc etc.

What should I do? HEEEEEEELLLLP!

Many thanks

Helga14

You should be able to staircase if they will give you more mortgage now... but you will need to either buy with Abbey or pay the early repayment charge and get a mortage elsewhere with another lender.

I brought a shared ownership place in Dec 06 with a five year fixed rate from Britannia Building Society. I'm buying another 20% at the moment and so had to go to Britannia for more mortage, their rates and charges are pretty reasonable though so I'm fine with that.

The process is rather slow though.

izoomzoom

you'll need to get a second mortgage for 60% of £160K.

Hopefully in time you'll be able to align the two mortgages together, but will probably have to go onto std varible rate for a (short) period if you want to.

overall owning 100% will be much better because at least you wont have to pay infated rates, just because it is SO :mad:

Are u happy that the overall value of your property has gone up ? In the current climate I think it may be better to see if prices do actually go down and then your 60% share will cost you less.:money:

izoomzoom

Helga14 wrote: »

You should be able to staircase if they will give you more mortgage now... but you will need to either buy with Abbey or pay the early repayment charge and get a mortage elsewhere with another lender.

I brought a shared ownership place in Dec 06 with a five year fixed rate from Britannia Building Society. I'm buying another 20% at the moment and so had to go to Britannia for more mortage, their rates and charges are pretty reasonable though so I'm fine with that.

The process is rather slow though.

we have to remortgage for sept. can you tell me what you have been offerred by britannia - i can't find SO mortgages on their website.

Helga14

My first five year fixed was for 5.09% the arrangement fee was £399. The new lending is at 5.79 for three years fixed and the arrangement fee was £299. I will have a period of a about 8 months in 3 years when I'll need to go onto the SVR to match up the two mortages. Also as I am a member I now get about £100 back from them a year as a member reward. So it is is pretty good.

However I just looked at their website and they have changed things loads in the last week. They had put their 3 year fixed rate down to 5.69 but now the 3 year fix is for less than 75% Loan to Value is

6.44% Fixed for three years, followed by our Standard Variable Rate, currently 6.80% variable for the rest of the mortgage. The overall cost for comparison is 7.0%APR.

That is a massive jump!! Britannia only do shared ownership mortgages if you are buying at least 50% of your property and they are fairly conservative lenders. They just do their normal mortgages as shared ownership rather than a special shared ownership one.