Co-Ownership Mortgages ...

Last post Wed, Apr 06 2011, 6:38 PM by CathalMc. 6 replies.
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  •  Wed, Apr 06 2011, 6:38 PM

    Re: Co-Ownership Mortgages ...

    It all seems very very strict?

    your a mortgage broker? where are you based and could I email you?
    • Post Points: 5
  •  Wed, Apr 06 2011, 6:08 PM

    Re: Co-Ownership Mortgages ...

    Its based on a lottery system of all appluications received. They only allow applications to arrive on 2 days in the year. this month it was 4th and 5th April and then on the 6th (today) they will pick out a quota of application that has already been predecided upon. This month and for the next 2 months they are taking on 60 application. While I( do not know the exact numbers of applications that they get I am told it is around 120 - 150 so you have about a 1 in 2 or 3 chance of being picked. Any uncompleted applications or uncompleted documentation applications are thrown out immediately
    • Post Points: 20
  •  Wed, Apr 06 2011, 4:44 PM

    Re: Co-Ownership Mortgages ...

    thanks for the info, its a great help.

    Im from N.Ireland, based in Mid Ulster.

    Is it generally hard to get accepted for this scheme? Yes I have some personal debt which has improved over the past few months plus I would be clearing a £3,500 debt before any mortgage.
    • Post Points: 20
  •  Tue, Apr 05 2011, 9:07 PM

    Re: Co-Ownership Mortgages ...

    I personally see this type of deal as a great way for first time buyers to get onto the housing ladder when they cannot afford the full mortgage through their own means.

    I mentioned it before because of things that you have said, your name and now because you have referred to the scheme as Co-Ownership and not a shared equity as anyone in England would noramlly refer to it but it sounds likle you are in Northern Ireland.

    In my opinion it is wonderful news that this scheme has reappeared here and I have had great pleasure in setting up a good few first time buyers with new homes through Co Ownership and will continue to do so...I submitted 3 cases this month for clients. The system used is very fair and helps hundreds of people onto the ladder each year at very little cost. (the rental figure of 2.5% I gave is through Co Ownership figures) I am a big fan!

    A big plus on this for Northern Ireland residents is that if you make it through the Co ownership assessment and are sucessful then Ulster Bank will effectively let you then take out a 100% loan on your share of the purchase, no deposit needed!...Sorry, only available in Northern Ireland. No other lender will do this though

    I see from some of your previous posts that you have some personal debts. Do be aware though that they will not accept you if you have got personal debts of more than £5,000, these would need to be cleared or reduced below this level before you apply and they also do not like to see any adverse credits with their applicants

    • Post Points: 20
  •  Tue, Apr 05 2011, 8:37 PM

    Re: Co-Ownership Mortgages ...

    Thanks, thats great. In your view should I stay well clear or use it as an advantage to get on the ladder.

    Has anyone here had this type of mortgage?
    • Post Points: 20
  •  Tue, Apr 05 2011, 8:28 PM

    Re: Co-Ownership Mortgages ...

    Simply put:

    You buy what ever share you wish to buy, the housing association / builder will then buy the remaining share and you will rent the remaining share from them at a pre-agreed rate. You have the option to buy out this remaining share at any time but you will be buying the remaining percentage of the property value at the value that is placed on it when you buy out the remainder and not the price you paid for it today.


    Buy a £100,000 house and take an 85% (£85,000) share. Co-Ownership own 15% (£15,000)

    You then put down a deposit of what ever you need on the balance you owe (say 10% (£8,500) and then you take out a mortgage on the remaining balance (£85,000 - £8,500 = £76,500).

    Co-Ownership will purchase the remainder and you will pay a rental based on their portion of the property. It may be an annual charge of around 2.5% and you will then pay Co-Ownership this sum divied by 12 months as your rental for the portion of the property that they own. (£15,000 x 2.5% = £375 / 12 months = £31.25 per month rental.

    If you then decided to buy out the remaining 15% portion of the property then Co-Ownership will gwet the property revalued and you will then buy out the property based on 15% of the new valuation. So if the house has doubled in value since you bought it and is worth £200,000 then Co-Ownership would require 15% of this figure as the buyout price (£200,000 x 15% = £30,000)

    Hope that all makes sense for you.

    • Post Points: 20
  •  Tue, Apr 05 2011, 7:15 PM

    Co-Ownership Mortgages ...

    Can someone give me a quick low down on these? They are being talked about alot but I hear nothing but bad reports about this type of mortgage.

    Can anyone shed some light?

    Here is what I have been offered ...

    House price is £115,000

    buy 85% of the house costing £570 per month. Now Am i correct in saying that the bank then owns the other 15% and that it would cost me £17250 somewhere down the line to buy the remaining %
    • Post Points: 20