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Corsa Sport » Message Board » Off Day » House Day » Advice on house buying! Shared equity? » Post Reply
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Cavey |
posted on 18th Sep 09 at 16:02 |
quote: Found out today that we've been accepted onto the scheme so meeting our advisor next week to sort out mortgages and get our house purchased! This was the only way we'd be able to get a house tbh, the mortgage we'll be getting is 121k with a 12k deposit, on a house which has a market value of 190k. We wanted to get on the housing ladder, mainly because the market bottomed out, and prices will/are slowly rising again, so wanted to get in now, and also, we're paying £500 a month in rent, for an extra £100 or so we could be owning a house instead of paying for someone else to own one. | |
deanmcreynolds26 |
posted on 18th Sep 09 at 15:56 |
quote: almost bought a house this way, and you only need the mortgage for the 80% on a standard mortgage, as the builder owns the other 20% and you have up to ten years to pay back at market value, could also pay it off at different stages but again at market value mate ;-) is a good way to get on the market but i found the house i was looking at i couldnt make much money on in the next 5-10 years so i pulled out, was looking at it as a stepping stone, but actually it wouldve been a bit of a kick in the teeth when i decided in a few years i wanted a bigger house, so something you really need to think about esp if ur planning kids or that? :o | |
VegasPhil |
posted on 18th Sep 09 at 10:54 |
quote: :lol: At least with the shared ownership schemes you can usually buy a 25% stake in the property from the housing association once a year. With the 80/20 schemes you could buy the other 20% as soon as you can afford it... | |
BYRON |
posted on 18th Sep 09 at 10:40 |
quote: Maybe so, but there is a bigger picture to consider imo. Im sat there making equity :o on 100% of my house, whereas they can only ever make 50% equity as they will never ever be able to afford the other 50%..Not for me ta. | |
a_j_mair |
posted on 18th Sep 09 at 10:25 |
first bit of advice, forget the socialising | |
VegasPhil |
posted on 18th Sep 09 at 10:00 |
That sort of scheme is a Builder incentive where the builder retains 20% of the property value. You have to pay back the 20% if you sell it or 10 years later. Whichever comes first. | |
Kathryn W |
posted on 18th Sep 09 at 09:34 |
You need to find out if you need a deposit for the mortgage, then how much you will be paying etc.. | |
James |
posted on 18th Sep 09 at 07:36 |
quote: That's not really the point TBH. It's never claimed to work out cheaper. It's aim is to allow people with no deposit get some equity behind them. I still think it's best to avoid if at all possible. | |
John |
posted on 18th Sep 09 at 07:35 |
Did he have 25% deposit though? That's by far the biggest problem. | |
BYRON |
posted on 18th Sep 09 at 07:27 |
A friend has a 50% shared equity flat, and after he has paid the mortgage, the rent, service and maintenance charges - it costs more than what Im paying to own 100% of my property of the same value. | |
Conway563 |
posted on 17th Sep 09 at 20:20 |
When I was looking at shared ownership mortgages you needed a 10% deposit (on your share, so would be £9k) and rates were round 6% when the market was on it's ass | |
AndyKent |
posted on 17th Sep 09 at 19:03 |
I think they're a rip-off tbh, though the price of that one doesn't seem quite so rediculous as those round here...... | |
corsaaa_16v |
posted on 17th Sep 09 at 18:35 |
Me and the missus are looking into buying our first house but I have a few questions: |