Skipton Track Record Mortgage - shared ownership! Help?

[mummato1xo]

Skipton Track Record Mortgage - would shared ownership count as owning a property?
Hi everyone,
I’m hoping someone may have experience with Skipton’s Track Record Mortgage or something similar.
My partner and I currently own a 25% share of a shared ownership property. The full value of the house is around £355,000, our share is worth approximately £88,750 and our outstanding mortgage is around £78,087, leaving us with around £11,000 equity.
We want to sell and buy a house that we own 100%, but our issue is that we don’t have separate savings. The £11k equity would need to cover the costs of moving (solicitors, stamp duty, etc.), rather than being used as a deposit.
We’ve been looking at 100% mortgage options and came across Skipton’s Track Record Mortgage, which looks like it could potentially work because we have a strong rental payment history and a combined income of around £80k.
The question I can’t find a clear answer to is:
Would Skipton consider us eligible for Track Record if we currently own a 25% shared ownership property, but we would be selling it as part of the move?
I know Track Record is aimed at people who haven’t owned a property, so I’m unsure whether shared ownership counts as “owning a property” for their criteria.
Has anyone successfully used Skipton Track Record after having shared ownership, or been in a similar position?
Thanks!

I would advise you to speak with a mortgage broker 😊

Thanks that’s the plan tomorrow just wondered if anyone had the same experience at all :)

I don’t know anything about the Skipton mortgage but surely you’ll need a deposit for the house move and it sounds like the 11k equity you have will be mostly taken by moving fees?

The track record mortgage is a 100% mortgage, no deposit. Aimed at first time buyers but wondered if there was options for people like us with them. Shared ownership has been the worst decision as we’re stuck

You're not a first time buyer, you have a mortgage and own a property (even if it's shared ownership you own 25%). The clue as they say is in the title - Shared Ownership.

Mm I thought this would be the case. Looks like we’re trapped which is an awfully hard position to be in.

How long have you owned the property and what deposit did you put down? 11k seems not very much if that includes your deposit, even my deposit was around £7k minimum (i put way more than that down though)

Also I'd spend time building up a deposit/moving costs as you'll have conveyancing/solicitor fees as well. 11k won't get you very far.

we put down 10%, £8875 for the share! Owned 2 years but the rent here is awful £915 + mortgage of £347

Have you looked at how much a mortgage would be for a similarly priced house or are you looking to buy a house worth much less? As for 340k over 25 years you'd be paying around £1800/£1900 mortgage which is a big increase on what you are paying now.

Hi I work in this industry- your not a FTB. But a mortgage broker may be able to help and advise other products

Looking at buying around £235,000 to be honest, need to get out of our situation

You might be better selling, and saving the cash in a cash ISA, rent (if that's possible) at a lower value and save the difference from what your paying in your current situation into savings so you build up enough of a deposit back up. That would also give you a better position to buy again and be attractive as a buyer with no chain, the market is slow so you may get a better deal on your next house.

Check what all the fees add up to though as it could wipe out your entire equity. What's the drive to sell, affordability? Will that be changing on the mortgage or is it already an issue as it's stands?

The drive to move is that we are currently paying £912 in rent. Also my partner lost his dad when he was younger and he put part of the house in his name, he wants to look at setting up a business with the money to rent properties but can’t do this whilst in shared ownership, stuck between a rock and a hard place with it at the moment!

Could you sell and rent somewhere cheaper to give you time to save up your deposit etc.? Skipton consider you a first time buyer if you've rented for 3 years.

I did think about this but rent around here is £1600 a month for a 3 bed property which is more than we’re paying now, so unsure if it will work. Thank you for the advice though ☺️

On a combined income of £80k can you not get a mortgage to buy the rest of the house? Then in a few years decide if you want to stay or sell?

Well, your partner owns another property? So definitely isn't a FTB?

Surely you need to fix your permanent home solution before you start a ‘property business’. All sounds a bit pie in the sky. You would be daft to lose the £11k equity you do have on stamp duty and fees.

He doesn’t own the property as it’s only if something happens to his mum. But apparently there’s a way it can be opened up.

It’s not me wanting a property business haha I want to fix the home solution first. The equity isn’t there at the moment, seems the house price has dropped

Could you step the mortgage in the house you've in and buy more equity if the price has dropped?

See we tried this, but apparently we’d need to change our mortgage provider as we would have less than a 10% deposit in the property, which means we’d have to pay the mortgage off and now because it’s worth less, once the current mortgage paid off we wouldn’t be left with enough for even a 5% deposit for staircasing , because I love the house we are in so was hoping we could do that

Sounds a really tricky position to be in - a bit of a cautionary tale about shared ownership (which I looked into extensively before deciding it’s a no/no, as tempting as it was). In your shoes, I would try to have a frugal couple of years to build up a deposit before selling and no, you wouldn’t be classed as a FTB. Good luck.

Honestly it sounds like you need to stick it out, a tight few years, built up some equity and some savings and see if you can ladder / sell in a few years.
I don’t know your other outgoings, but the mortgage and rent combined doesn’t sound awful on your income.