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Shared ownership mortgages (first time fumblings)
#1
Morning all

Has anyone got any experience with shared ownership/part rent part buy mortgages?  

I've been looking into private renting which seems almost prohibitively expensive and I'm not in a position to buy out right.

Any thoughts or advice appreciated  Smile
Ride the Spiral to the end
It takes us to where no ones been
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#2
I do! Me me!  Smile

What do you want to know?

Basic rules are you wont get the best interest rates, you will be limited to certain lenders and will need to involve more solicitors. However it is worth it to have a slice of your own place so don't be put off by it at all.
2010 Canyon Aeroad 9.0 SL
2014 Specialized Epic Marathon
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#3
Its how i started out and then we went on to buy the other half out right. good for first time starters.
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#4
How do you find out about which lenders you can use, I've seen the term "local agent" used a few times but don't know who that would be .  I've also read about having to join or go through a housing association  Undecided

I've got an aappointment tomorrow at the bank but its all a bit of a mystery to me so expect a whole raft of dumb questions lol
Ride the Spiral to the end
It takes us to where no ones been
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#5
"stayhigh65" Wrote:How do you find out about which lenders you can use, I've seen the term "local agent" used a few times but don't know who that would be .  I've also read about having to join or go through a housing association  Undecided

I've got an aappointment tomorrow at the bank but its all a bit of a mystery to me so expect a whole raft of dumb questions lol

If found it useful to go and see an independent mortgage broker and let them do the hard work to be honest, they will be able to weed out the non-starters and leave you with the real options. Most shared ownership properties are part of a housing association, mine is Moat, I think Hyde are the other local one. Basically they are the people you pay the rent to as they own the other share of the property.

As Mark says, you can 'stair case' your way to purchasing the whole thing, mine has to be done in 3 steps or less to reach 100%. Its an excellent way to get on the ladder as you get a fairly free regin in terms of decoration etc and only structural work has to be approved by the association, for example I replaced my back door for UPVC without having to sign anything. I can see it becoming more and more popular as saving a deposit is a near on impossible task at the moment.

One word of advice re the mortgage, work out its cost at say 5% more than the rate you secure, and see if you can, in theory, still afford it. With the base rate so low rates are down but once it starts to climb things can get expensive. Also look into overpaying if you can, it will smash the interest you acrue and shorten the life of the mortgage massively. Overpaying a £125,000, 3% mortgage by £50 a month would save you £6K in interest and pay it off nearly 3 years early... food for thought.
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2014 Specialized Epic Marathon
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#6
Not something I've really paid attention too or would consider but from what I've read it can be a good option if you are prepared to commit to it in the long run.

The horror stories seem to come when people try to sell up - it can get quite complicated.

I've also heard various bad joo-joos with the HA/other owner going into administration....  Undecided
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#7
Ok so for my next dumb Q; how does one source an independent financial advisor?
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It takes us to where no ones been
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#8
Try Spencer Havers, used to work with him - 01732 462005, <!-- w --><a class="postlink" href="http://www.spencerhavers.com">www.spencerhavers.com</a><!-- w -->
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2014 Specialized Epic Marathon
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#9
Cool, will give them a call tomorrow. Working tonight so have to crash now.
Ride the Spiral to the end
It takes us to where no ones been
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#10
My first house was a part rent part buy, I bought 27% originally and staircased twice to own 70% by the time I sold it. When I did sell it I even had equity in it. I bought it thorugh Moat Housing at the time, think theyve changed name now. For me it was the only way to get out of renting. I bought a two bed house, was paying under £600 in all for rent and mortgage for a brand new two bed house. If you can get on it and you cant buy on a regular mortgage Id def recommend it. Better than paying a landlord and paying his mortage and giving him profit.
Most housing providers will recommend a mortgage broker you can speak to and the lender you can use. I used The Leed Building Society and they were good, great customers service but as mentioned, not the most competitive rates on the type of deals.
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