deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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Not sure if they're the correct terms, but it's the basic principle of a Housing Association owning part of your house, then you pay both rent and the mortgage for a set period, or rent for 3 - 5 years, then get a 35% discount on the house etc.
Does anyone have a mortgage through one such scheme? Is it a Housing Association one or a private builders contribution type mortgage?!
I'm a pretty long way off having my own place due to still being a student, but I am one for planning for the future and am just really concerned about getting on the property ladder, what with the current economic situation, rising house prices etc. When I graduate and start earning, I want to try and refrain from renting, because it's money that I could be saving for my own place.
The only reason I'm asking now is because I'm always thinking about the future, but also a colleague at work has just moved into a place with one such scheme/mortgage, and they enquired about 3 weeks ago, so it's really quick i.e. not saving up for a deposit for 2 - 3 years etc.
So yeah does anyone not have a 'normal' mortgage?!
 
[Edited on 18-08-2008 by deano87]
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ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
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More commonly called 'shared ownership' mate
theres loads of deals about at the moment will all sorts of % of ownership from 75%-25%!!
Can be expensive paying a mortgage + rent on the same house plus if you do the government thing you have to meet strict criteria iirc.
Alot of builders are doing the same deals too
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ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
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And you'll still need atleast a 5% deposit mate, 10% ideally
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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The guy at work moved in without a deposit though 
I think it was to get the apartments occupied though.
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ash_corsa
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Registered: 15th Apr 04
Location: Shrewsbury
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some builders will pay towards a deposit
but now you cant get 100% mortguages you either need your own deposit or the builder to pay it for you
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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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quote:
Originally posted by ash_corsa
More commonly called 'shared ownership' mate
theres loads of deals about at the moment will all sorts of % of ownership from 75%-25%!!
Can be expensive paying a mortgage + rent on the same house
Wrong....it's cheaper, thats the point. A motgage to buy the whole of my house (160K less 15K deposit = 145K) would come out at £800. I currently pay £310 mortgage then £140 rent, so it's loads cheaper.
plus if you do the government thing you have to meet strict criteria iirc.
You do with any. You can't be earning 50K a year and get a shared ownership home. You have to meet criteria such are you not on mega money, do you have pets as some places don't allow, are you a young couple, single etc. Every scheme is different.
Alot of builders are doing the same deals too
Any questions Deano, fire away mate. I'm pretty good at this shared ownership lark 
[Edited on 20-08-2008 by Dean_W]
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Tommy L
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Registered: 21st Aug 06
Location: Northampton Drives: Audi wagon
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How do bills work out? ie water, electric?
How do you go about shared ownership?
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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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quote:
Originally posted by corsa_tomtom
How do bills work out? ie water, electric?
How do you go about shared ownership?
Bills are paid for by you as normal.
You need to find out who your local shared ownership scheme is then go from there. You need to be vetted, then you can put an offer in on a house. Houses are sold as normal in estate agents.
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Conway563
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Registered: 7th Jun 06
Location: Yate, Bristol
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I've been looking into this but everytime I've gone to an estate agents they've asked what type of mortgage I'll have and when saying shared ownership they say theres only a couple of houses available for that. Don't really want any of the ones they offer as there about 15 miles away from where I live now but I've heard there's an open market thing where you buy a house on the normal market
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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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quote:
Originally posted by Conway563
I've been looking into this but everytime I've gone to an estate agents they've asked what type of mortgage I'll have and when saying shared ownership they say theres only a couple of houses available for that.
Bit confuzzled by that.......Shared ownership isn't a type of mortgage. It's a type of ownership.
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Conway563
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Registered: 7th Jun 06
Location: Yate, Bristol
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Just going from what I was told when I first spoke to someone about it. Got a letter the other day to say I was eligible for shared ownership so should really get off my ass and sort something out about it
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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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If you speak to the association that vetted you they should be able to give you a list of properties that are for sale
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deano87
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Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
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I spoke to my colleague at work today a bit more in depth.
It seems a funny situation. It's a private housing development, with Housing Association dwellings (nothing strange). But they have given a 'retail' value on the houses.
All he has had to do is pay 2 months rent up front as a deposit, then, pays rent for 3 - 5 years. After this period, he gets a 35% discount off the retail of the flat.
So he can then buy the flat at the discounted rate. But he still needs to find a deposit for the remainder in that time, of which 10% will be about £16k.
I'd prefer the scenario where you pay rent and the mortgage at the same time.
Dean, when you decide you want a bigger share of the house, what do you do? And did you need a deposit to move in where you now live?
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AndyKent
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Registered: 3rd Sep 05
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The difference with mortgages needed for shared ownership schemes is that if you default, the bank is in a difficult situation with regard to getting their money back.
Usually they can just sell the house on to recoup their loses but with a second owner (the housing association) its a bit more long winded.
You'll need a mortgage geared up for shared ownership schemes from whoever happens to be offering them at the time.
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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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quote:
Originally posted by deano87
I spoke to my colleague at work today a bit more in depth.
It seems a funny situation. It's a private housing development, with Housing Association dwellings (nothing strange). But they have given a 'retail' value on the houses.
All he has had to do is pay 2 months rent up front as a deposit, then, pays rent for 3 - 5 years. After this period, he gets a 35% discount off the retail of the flat.
So he can then buy the flat at the discounted rate. But he still needs to find a deposit for the remainder in that time, of which 10% will be about £16k.
I'd prefer the scenario where you pay rent and the mortgage at the same time.
Dean, when you decide you want a bigger share of the house, what do you do? And did you need a deposit to move in where you now live?
Aye, seems a bit of a funny one with your mate, not heard that one before. Seems a bit long winded and a pain in the arse.
When you want a bigger share, you let them know. They then value the house and then you can buy in 25% increments. I own 50% so I could go to 75% or 100% ownership. You re-mortgage for the amount needed then pay them for it. Solicitors fees and stuff i'm not too sure on.
I put down a large deposit, but if you can get a 100% mortgage on a shared ownership then you wouldn't need to. You don't have to leave a deposit for the half you rent either.
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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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quote:
Originally posted by aPk
You'll need a mortgage geared up for shared ownership schemes from whoever happens to be offering them at the time.
About 12 months ago a lot of banks were offering shared ownership mortgages due to silly house prices.
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AndyKent
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Registered: 3rd Sep 05
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quote:
Originally posted by Dean_W
quote:
Originally posted by deano87
I spoke to my colleague at work today a bit more in depth.
It seems a funny situation. It's a private housing development, with Housing Association dwellings (nothing strange). But they have given a 'retail' value on the houses.
All he has had to do is pay 2 months rent up front as a deposit, then, pays rent for 3 - 5 years. After this period, he gets a 35% discount off the retail of the flat.
So he can then buy the flat at the discounted rate. But he still needs to find a deposit for the remainder in that time, of which 10% will be about £16k.
I'd prefer the scenario where you pay rent and the mortgage at the same time.
Dean, when you decide you want a bigger share of the house, what do you do? And did you need a deposit to move in where you now live?
Aye, seems a bit of a funny one with your mate, not heard that one before. Seems a bit long winded and a pain in the arse.
When you want a bigger share, you let them know. They then value the house and then you can buy in 25% increments. I own 50% so I could go to 75% or 100% ownership. You re-mortgage for the amount needed then pay them for it. Solicitors fees and stuff i'm not too sure on.
I put down a large deposit, but if you can get a 100% mortgage on a shared ownership then you wouldn't need to. You don't have to leave a deposit for the half you rent either.
So in a good market you're actually loosing money? ie. you buy 'half' for 50k. 5 years later they value the next 25% at 30k meaning you're 5k down already. Sounds like a pretty poor deal to me!
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Dean_W
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Registered: 13th Dec 05
Location: Downham Market, Norfolk
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You can loose money on any house
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