c4rsa-sport
Member
Registered: 6th Apr 05
Location: halesowen - birmingham
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After things falling through with the ex misses and the house, i am now looking to get my own place, have been looking into these shared mortgages just looking for as much advice as possible. What are your thoughts on them?
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
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Gets you in a house but normally in a situation you need to buy yourself out of.
Probably more expensive than renting depending how long you're staying but you've got security of it being yours and not being thrown out because the landlord changes their mind, plus you might get equity but I wouldn't bank on that bit.
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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If its the only option to getting on the property ladder go for it.
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Toby
Premium Member
Registered: 29th Nov 05
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It depends how its set up, some schemes work better than others. If i were you and this was an option, have your parents or whatever take out a loan for the difference and give you the cash as a deposit, the interest on the loan will be far cheaper than buying yourself out in 10/15 years time but then you have the burden on paying two loans and finding someone who has enough credit to get the loan/can afford to give you the 'credit' so to speak.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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quote:
Originally posted by MarkM
If its the only option to getting on the property ladder go for it.
What ladder? The one that puts you in a better position to buy in five years?
Or buy now, asset doesn't appreciate, accrue interest, fees, responsibilities, pay to market, pay to exchange.
Then after paying all that and being compared to renting, you're no longer eligible for FTB deals.
Ladder isn't the only place to stand.
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MarkM
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Registered: 11th Apr 01
Location: Liverpool
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As I said if other (better) options aren't available to for it. If his goal is to own his own place (even partly) he has to go for it through lack of options.
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Sam
Moderator
Premium Member
Registered: 24th Dec 99
Location: West Midlands
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Waste of time. Find a way of earning extra income and save up for a deposit, then get a traditional mortgage.
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Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
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shared mortgage as in part buy part rent?
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RichR
Premium Member
Registered: 17th Oct 01
Location: Waterhouses, Staffordshire
User status: Offline
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quote:
Originally posted by Russ
shared mortgage as in part buy part rent?
Yes
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c4rsa-sport
Member
Registered: 6th Apr 05
Location: halesowen - birmingham
User status: Offline
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I guessed that there would be mixed opinions, my mate is doing it and after talking to him he seems ok with it, will look into it more now the new year has come around.
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John
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Registered: 30th Jun 03
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Seems like a very easy way to be stuck in a house you don't want in 2 years time.
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Nath
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Registered: 3rd Apr 02
Location: MK
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My sisters fiancée has one on this and it's a good deal if you don't earn that much and dont want to rent. His combined mortgage and rent is less than the rent on comparable properties. Good if you can't realistically save a proper deposit. Also good if house prices are a joke, like they are.
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Nath
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Registered: 3rd Apr 02
Location: MK
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He's been there for 7 years too.
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Russ
Member
Registered: 14th Mar 04
Location: Armchair
User status: Offline
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quote:
Originally posted by LiVe LeE
quote:
Originally posted by Russ
shared mortgage as in part buy part rent?
Yes
i have one of these, can increase share of local housing association every year by 5% at market value, minus any improvements
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Russ
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Registered: 14th Mar 04
Location: Armchair
User status: Offline
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quote:
Originally posted by Nath
My sisters fiancée has one on this and it's a good deal if you don't earn that much and dont want to rent. His combined mortgage and rent is less than the rent on comparable properties. Good if you can't realistically save a proper deposit. Also good if house prices are a joke, like they are.
this too, my rent+mortgage on a 3 bed semi with large garden and off road parking for about 5 cars is less than £500 a month. everything round here is £550+ for a two bed
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Russ
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Registered: 14th Mar 04
Location: Armchair
User status: Offline
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http://www.orbithomebuyagents.co.uk/main.cfm
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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quote:
Originally posted by Nath
Good if you can't realistically save a proper deposit.
That's kind of my gripe with it.
Its just low equity ownership and as such, very expensive. I bet if you add it all up, it'll be surprisingly expensive over the medium to long term and prohibitively expensive to get out in the short term.
As posted, great way of pretending to own a house but in reality there's no opportunity to realise equity for many years.
Good idea if you want to not be forced to move but do the maths at all times. All of these schemes are just ways to cloud the actual cost to live there.
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