shared ownership and mortgages

[hotHELL]

friend is going to try for this, but are lenders less likely to give a mortgage in the current climate to people who want to buy a shared ownership?

Hi, not all lenders will lend on shared ownership properties so the best people to ask are the company who she is buying with or to find an IFA.
The company I work for do not lend on shared ownership.
In terms of the current climate lenders are looking more carefully at peoples credit history etc to see that there is a reduced risk to lending to them

HTH

honestly in this climate they may be better waiting 6 months as they then may be able to buy something wihtout shared ownership.

Agree with cargirl

which area to they live in? Is there any reason why they can't wait as I cannot see house prices rising only falling.

My friend was about to buy a SO place but the housing assn is completely refusing to acknowledge downturn and it now makes more sense for her to wait and see if she can afford an open market home (the open market flats in this complex have been coming down in price but SO not ). Also, your friend may be better off exploring new govt loans for buying on open market announced in budget and available for people such as keyworkers, those in high priority housing need etc.

friend is in london, and to be honest here we don't see prices going down, not really.

I'm near Weybridge and stuff is definately stalling and not shifting ATM, mostly in the last month

london will come down eventually too.Nowhere is immune this time as multiples and risky lending have become ridiculous everywhere and although atm there is a standoff and sellers won't budge on prices they are going to have to if they want to sell as surveyors are down valuing in London too and chainms are breaking.Do not buy now unless you have a huge deposit and are looking for a home and not a nest egg

I am in London as well and so is friend who was buying SO - prices, especially in new devpts, are coming down. Ring up a couple and see what deals they are prepared to do - basically, most are offering stamp duty plus deposit and other extras that bring price well under 10% off guide which, in many cases, has also been revised down albeit not hugely yet.

It occurs to me reading this that another good reason for holding off on shared ownership is the possibility of HA running into financial trouble - quite a big HA Ujima folded recently. Financially HAs who have invested a lot of money in building new properties intended for SO could be in some difficulty as their sums from their original plans (and their borrowing from lenders) will no longer add up. Eeek.

HotHell, is your friend renting at the moment, and in social or private rented?

Hi hothell dp a mortgage advisor and he has looked into these for mners before. If your friend fits the criteria there is no reason she wouldn't get one if she wants to speak to him he has an ad on here here