dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
|
Anyone actually on the scheme or work with it on a daily basis? Just wondering if its a cost effective way of doing it.
Example of a property
Rightmove = £60000 mortgage / £156p/m rent
Are these properties overpriced at 100% or are they actually a good deal?
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Nope but ive been looking at a few deals recently offering shared equity.
i.e. Builder retains 15-25% equity in the house & you pay for the rest.
You own all of the house & have either 10yrs to pay back the equity share or they get their % of market value when you come to sell.
Not a bad thing imo.
Not sure on the part mortgage part rent thing, theres none of that up here. Sounds expensive though paying mortgage & rent. How do you save on that? 
|
deano87
Member
Registered: 21st Oct 06
Location: Bedfordshire Drives: Ford Fiesta
User status: Offline
|
quote:
Originally posted by Colin
Not sure on the part mortgage part rent thing, theres none of that up here. Sounds expensive though paying mortgage & rent. How do you save on that?
It's not the point of saving. It's the point of getting your own house and on the property ladder, by not having such a high mortgage.
It's the same principle you described, but through the council and such.
|
Colin
Member
Registered: 4th Apr 02
User status: Offline
|
Ok save was maybe the wrong word.............swap save with benifit.
Surely if you have rent as an additional outgoing then you wont get as high a mortgage from the lenders as your affordability will be less so will be in a worse position.
At least with the shared equity scheme your not obliged to be paying anything extra. You can leave their share running for as long as you want or pay it IF you want. Your not paying rent every month to live in the house you pay a mortgage for
[Edited on 11-01-2009 by Colin]
|
dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
|
That house though for example, around here 100% renting would be £600 a month (maybe more tbh)? On £60000 equity we would need £50000 mortgage, I dont know what I would be looking at repayments a month (capital repayment) but obv that repayment + £156 rent, cant see it being much different to £600 a month?
[Edited on 11-01-2009 by dannymccann]
|
lisac
Member
Registered: 10th Apr 08
Location: Lincolnshire
User status: Offline
|
I looked into this myself with a mortgage advisor and also it was part buy and part rent. Ut worked out really expensive as 50% mortagage repayment worked out 550 pm then £260 rent. Then after you have paid your 35 year mortgage you stilll had to buy the rest of the house, at £550 per month. WHere as if i got a 100% mortgage on the property repayments would of been £750 approx and it was yours after the 35 years.
Couldnt see the benefit myself so opted against it
|
ash_corsa
Member
Registered: 15th Apr 04
Location: Shrewsbury
User status: Offline
|
quote:
Originally posted by dannymccann
That house though for example, around here 100% renting would be £600 a month (maybe more tbh)? On £60000 equity we would need £50000 mortgage, I dont know what I would be looking at repayments a month (capital repayment) but obv that repayment + £156 rent, cant see it being much different to £600 a month?
[Edited on 11-01-2009 by dannymccann]
£50k mortgage over 35yrs at an average of 5.9% works out at around £285/p month + your £156 rent you'll be well-under the £600 a month for the full house price...
|
dannymccann
Member
Registered: 9th Aug 06
Location: Doddington, Lincolnshire
User status: Offline
|
Not looking into it anymore, all the properties on it are overpriced round our way.
Going to view this house soon
Been told by several agents on our 25k a year (minimum, soon to be at least 30k) with £6 - £8k deposit we could easily see 90 / 100k mortgage.
Fingers crossed 
|
