shared ownership/mortgage advice + fees

nesk21

I'm looking to buy shared ownership...

Ive have been advised the best deal by my mortgage advisor is 7.02% this seems rather high...

The advisor is charging a fee £295, is that the norm??

I'm new to all this, any advice help be sooo appreciated...


Thanks

UK007BullDog

Well, read the guides on this site, read the other posts on shared ownership, read the consumer guide on fsa.gov.uk.

the fee does not sound excessive. the rate is a bit high but then it depends on your property and lender as only a very few will lend.

Tiddler_2

It does also depend on whether you have any deposit to put down on your share.

Very few companies will now do 100% of your share

hyposmurf

Could you go to another mortgage advisor and see what they offer?Might be that theres a better deal out there.Why not do a search for mortgages online and then ring around a few lenders and see what they can offer you.You can get a "mortgage in principle" which is just a no obligations type quote from them.Thats what I did.

maccp

Hi,
we're just in the process of purchasing shared ownership property, we have our mortgage offer with nationwide at 5.8% but this has probably risen now due to the current financial climate our mortgage advisor fee is £250. I guess its worth having another shop around but these sort of mortgages are'nt that common so you will end up paying a higher rate than a'standard' motgage.


good luck

hyposmurf

I'm on shared ownership and am paying 4.79% interest on my mortgage.I did however get this deal back in 2006,but even then it was a good deal for those not on shared ownership.Maybe they are being tighter now on shared ownership with the credit crunch.

lucasmum

Hi, we are in the process of buying a shared ownership house. We went with a no fee broker who gets a percentage from the lender on completion.

We are going with Halifax and have had our offer on a 2 yr tracker of +.79% over BoE rate so at the mo 5.79%, and hopefully getting a bit lower!This was on the basis of just a 3% deposit which is pretty much as high LTV as you can get at the moment. I would say that your rate was high even for shared ownership, have a good look around- good luck

Dan_Collins_2

SO rates depend on a few things. 100% and thats good. 5 or 10% deposit and its high.

nesk21

Thanks for the info, I do have a 5% deposit so I'm hoping that helps a little too...

Bella56

Obviously I don't know your particular circumstances, but that does seem on the high side. We have a 50% shared ownership home and have just remortgaged with Nationwide for 5.63% without using a broker, and had the £499 reservation fee added to the mortgage (which isn't ideal, but we aren't rich!) Perhaps shop around a bit more? Our first mortgage was with Abbey and was under 5% although that was 2 years ago.

Conrad

Check out Ipswich Building Society and Saffron BS.

S/O is very diverse so its hard to make comparisons with the experience of other S/O applicants on here. The work involved can be considerable so I cant see how a broker is able to undertake without a fee. The percentage of S/O applications that fail is high. A client recently had an offer but then the offer itsself had to be checked by the housing association for thier own compliance!

Mistakes are more likely with S/O as there are so many varying schemes its easy for a lender / broker / solicitor to overlook something deep within the small print.