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ChatterBank11 mins ago
help needed with shared equity mortgage
2 Answers
My daughter is trying to obtain a mortgage 80-20% for a shared equity property. The Halifax agreed to it in principal with the amount of money she earns £22,000 p.a., but when it came to the crunch they said that due to the current financial crisis they would only take 60% of her wages into consideration when calculating the mortgage. I dont understand how they can do this as she is quite capable of managing the repayments of £550 per month and with the government making the building companies provide 'affordable homes' this seems a little stupid. Who on earth is going to be able to afford them? She has savings of £11,000 which is whatt they have asked for deposit and fees. It has been suggested that she looks for someone who wants to sell their equity in a home they have had for a while, but we dont know how to find out where these people are.
Has anyone else come across this problem and perhaps have any idea if or how we can overcome it.
Has anyone else come across this problem and perhaps have any idea if or how we can overcome it.
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with just a basic tax calculation and not knowing details I would estimate she would only have around £875 per month left after making mortage payments. Adding in all other monthly outgoings cash will be tight so I would suggest Halifax deem this as a high risk in the current climate.
Unfortunately the banks are not lending as freely as the government suggests they should and it is first time buyers finding it the hardest to get started. Try another mortage lender.
Unfortunately the banks are not lending as freely as the government suggests they should and it is first time buyers finding it the hardest to get started. Try another mortage lender.
Lending criteria is often different on shared ownership properties as they know there is also a rental element and service charge to take into account.
Regarding resales, quite often these go back to the housing association to market so if you are signed up you would get details of them. Sometimes they appear in the general market as well so you would see them on rightmove or in the paper marked as a shared ownership property. But the mortgage lending criteria would be the same so I can't see the advantage of this, unless the sale prices are lower?
Regarding resales, quite often these go back to the housing association to market so if you are signed up you would get details of them. Sometimes they appear in the general market as well so you would see them on rightmove or in the paper marked as a shared ownership property. But the mortgage lending criteria would be the same so I can't see the advantage of this, unless the sale prices are lower?
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