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    • By SHAREDOWNERSHIP 17th Apr 18, 11:49 AM
    • 2Posts
    • 0Thanks
    Help! Need some guidance.. Can I do this?
    • #1
    • 17th Apr 18, 11:49 AM
    Help! Need some guidance.. Can I do this? 17th Apr 18 at 11:49 AM
    Hello. First time posting so please be nice !!!128522;

    We are 50% owners to a shared ownership property. Two years ago this summer we remortgaged and got a much better rate. However since then our house has increased in value as neighbours with exactly the same layout have been selling their homes for 300k. When we remortgaged our house value was 230k.

    I'm estimating that our house is also worth 300k at full value. We have about 83k on our mortgage but we took out a 5 year fixed rate two years ago. Unfortunately we can't sell up and move on (although we love our home) as our joint income cannot support a mortgage for the house prices where we live. And nor do I think we can afford to buy the remaining 50%. So I was thinking, what if we were to replace our existing mortgage with another with a much better Ltv %? Therefore reducing the amount we pay for our mortgage.

    Would this be advisable? Just thinking of saving us some more money... Maybe even giving us a grant as we need a new car as my current one is on its last leg.

    Anybody been in this position? I know it probably sounds daft asking but I'd appreciate some guidance. Thanks!
Page 1
    • By SHAREDOWNERSHIP 17th Apr 18, 11:50 AM
    • 2 Posts
    • 0 Thanks
    • #2
    • 17th Apr 18, 11:50 AM
    • #2
    • 17th Apr 18, 11:50 AM
    Also shouts DD I be contacting our current lender to see if they can offer anything?
    • Klr005
    • By Klr005 17th Apr 18, 12:12 PM
    • 9 Posts
    • 4 Thanks
    • #3
    • 17th Apr 18, 12:12 PM
    Shared ownership too
    • #3
    • 17th Apr 18, 12:12 PM

    We're currently shared ownership too and own 60% - in the process of purchasing the remaining 40%. Stressful!.

    With rates rising atm it could be a very good idea to fix again at a lower rate if possible, which it could be if your LTV is better now.
    You would need to add up the cost of exiting your current fixed term (including repaying any free legals or other bonuses , exit fees and the early repayment fees) and weigh it up against how much a new rate would save you.

    Perhaps see a financial advisor so they can find you some packages based on what you think your new LTV would be and do the maths with the cost of exiting your current one?
    • Mortgage_Adviser
    • By Mortgage_Adviser 17th Apr 18, 1:29 PM
    • 125 Posts
    • 46 Thanks
    • #4
    • 17th Apr 18, 1:29 PM
    • #4
    • 17th Apr 18, 1:29 PM
    You need to do your maths and see how much money you would save by getting a cheaper mortgage with a differerent and how much money you will lose by having to pay an early repayment charge on your 5 year fixed mortgage.
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