hi all,
i've an affordable house i purchased in 2008 via shared ownership & (even after reading through so many of these threads) i'm still confused about some next steps i thought i should take - any clarification would help me MASSIVELY! here's the essay
MY SITUATION:
i bought in 2008; can't rem the value of the property at the time, but took out a 25 year mortgage and with 17 years left to pay & now have 211k outstanding with interest rate of 2.55%, with monthly payments of 1350 of which 700 is 'rent'. i left the country in 2013, and have been renting out the property since (DCC at the time said i could not rent out the full thing - but i had no choice), and in the past 3 months only is the rent meeting the mortgage payments.
WHAT I NEED TO DO:
i would like to buy a house now with my partner; and when speaking to the DCC recently to update myself on the terms; i was told that i 'qualified' for a 100% mortgage. she explained (which i was completely unaware of) that even at the end of the 17 years, i would still have 113k outstanding, which constitutes the councils rental portion. she also said if i took out a new mortgage, for the full amount of 211k, over 20 years, i'd be paying 1210 monthly and at the end, the mortgage would be completely paid off in full.
i was shocked firstly that for some reason, i was unaware of this set-up (HOW did i not understand this at the time????) and then surprised - the 100% mortgage seems like a no-brainer: reduced monthly payments but for 3 extra years i'd have the full amount paid off.
i decided i must get this sorted asap, and requested the forms to apply; received them; and as part of the documentation found they required 6 months bank statements. this poses a problem because i have been renting out the property, which is against the terms of the property.
so reviewing this site, i wanted to see if i could find information on other people who've rented out their SO property and also on the 100% mortgage bit. some threads have been esp enlightening, but i still have some qs:
Q1: from this thread, it would seem that the lady in the DCC might not be correct in her assumption that i will owe 113k at the end of the mortgage term - am i correct in understanding that? Brendan - i think you seem quite adamant that the DCC get info wrong. have i been misinformed? (my assumption would be that a member of the DCC would know more about it than - no offence, don't know your background or experience - a layperson?)
Q2: somebody else (and others, on other threads) seemed to imply that the 100% mortgages were not as good as they were cracked up to be - but i can't really decipher EXACTLY why....to be fair, it does seem like a weird 'gift' to be offered & i wonder what the DCC get out of it...
Q3: i assume that if i give 6 month's bank statements, they will see i've been renting out and i will not qualify for the 100% mortgage.
so! sorry if i've posted incorrectly a topic not directly linked to the thread, but my confusion applies to the set-up of my so hopefully it is relevant?
i feel lost - help :-(
i've an affordable house i purchased in 2008 via shared ownership & (even after reading through so many of these threads) i'm still confused about some next steps i thought i should take - any clarification would help me MASSIVELY! here's the essay
MY SITUATION:
i bought in 2008; can't rem the value of the property at the time, but took out a 25 year mortgage and with 17 years left to pay & now have 211k outstanding with interest rate of 2.55%, with monthly payments of 1350 of which 700 is 'rent'. i left the country in 2013, and have been renting out the property since (DCC at the time said i could not rent out the full thing - but i had no choice), and in the past 3 months only is the rent meeting the mortgage payments.
WHAT I NEED TO DO:
i would like to buy a house now with my partner; and when speaking to the DCC recently to update myself on the terms; i was told that i 'qualified' for a 100% mortgage. she explained (which i was completely unaware of) that even at the end of the 17 years, i would still have 113k outstanding, which constitutes the councils rental portion. she also said if i took out a new mortgage, for the full amount of 211k, over 20 years, i'd be paying 1210 monthly and at the end, the mortgage would be completely paid off in full.
i was shocked firstly that for some reason, i was unaware of this set-up (HOW did i not understand this at the time????) and then surprised - the 100% mortgage seems like a no-brainer: reduced monthly payments but for 3 extra years i'd have the full amount paid off.
i decided i must get this sorted asap, and requested the forms to apply; received them; and as part of the documentation found they required 6 months bank statements. this poses a problem because i have been renting out the property, which is against the terms of the property.
so reviewing this site, i wanted to see if i could find information on other people who've rented out their SO property and also on the 100% mortgage bit. some threads have been esp enlightening, but i still have some qs:
Q1: from this thread, it would seem that the lady in the DCC might not be correct in her assumption that i will owe 113k at the end of the mortgage term - am i correct in understanding that? Brendan - i think you seem quite adamant that the DCC get info wrong. have i been misinformed? (my assumption would be that a member of the DCC would know more about it than - no offence, don't know your background or experience - a layperson?)
Q2: somebody else (and others, on other threads) seemed to imply that the 100% mortgages were not as good as they were cracked up to be - but i can't really decipher EXACTLY why....to be fair, it does seem like a weird 'gift' to be offered & i wonder what the DCC get out of it...
Q3: i assume that if i give 6 month's bank statements, they will see i've been renting out and i will not qualify for the 100% mortgage.
so! sorry if i've posted incorrectly a topic not directly linked to the thread, but my confusion applies to the set-up of my so hopefully it is relevant?
i feel lost - help :-(