Looking for a shared ownership mortgage. Many first time buyer mortgages are for a shared ownership mortgage which suits their needs?  Every one wants a cheap shared ownership mortgage deal at the best rates available.Shared ownership mortgages are usually arranged on a 100% mortgage, 50% or 25% part rent part buy basis. For many people across the country this can be the only way to get a foot onto the housing ladder they are very popular with first time buyers.When you buy a shared ownership property, you only buy a percentage stake in the property, usually 25 to 50 per cent – from a housing association. Although this can be affordable, as you only own a percentage of the property you will miss out on some of the equity growth if the housing market starts to rises again. You can, however, staircase which means buying another portion of the property later on. Many lenders insist that this option must be available.

Cheap shared ownership mortgage rates enable a borrower the following benefits, Low interest rates, easy repayment options. Remortgage loans replace the existing shared ownership mortgage with a new one from either the same lender or a new lending company. It helps to reduce monthly payments and release home equity. Competitive shared ownership mortgage deals help individuals become financially stable.

Getting a cheap shared ownership mortgage could be a way of reducing your monthly outgoings for other expenses.  Many lenders are now offering more competitive interest rates to attract new business, ask your broker to source different deals from different lenders to compare which is the cheapest shared ownership deals

Once you have registered for with an affordable housing company you will be assessed for eligibility. If you are accepted remember to enquire what the rent will be for the share you will be renting as your broker will need to know when applying to a lender for a decision in principle.

100% mortgages lender Northern Rock has decide to pull out of the high risk 100% to 125% mortgages market. This type of loan has been a favourite of many borrowers who have used this 100% mortgages product to secure a property and get a loan.

The 100% mortgage product has been criticised for encouraging people to take on larger loans. The reality is most people were just consolidating existing loans and getting the same rate as their mortgage. In a rising mortgage market this concept worked very well. As the property was increasing in value this gave the owner a sense that existng loans were being paid off.

Tens of thousands of Northern Rock customers may eventually be forced to remortgage at much higher interest rates when their current offers expires many two fixed rates at 5.99% will be coming to an end in 2008.

“Our present lending appetite has changed,” said a bank spokesman.

“And demand for this product has now fallen to negligible levels, so we are withdrawing it,” he added.

If the nationalisation rescue of Northern Rock fails, we could all lose a possible 3,500 pounds each. The exposure to the tax payer’s money has doubled since the beginning of the year. Many borrowers who have borrowed against thier property with a 100% mortgage will owe thier money to the Bank of England.

100% mortgages have been the Northern Rocks loan of choice in the last few years. When credit conditions were relaxed and borrowing large amounts against on rising property prices was a safer bet.

It looks like The Bank if England wants its money back now. They will be aiming to reduce there mortgage based assets. When these 100% mortgages come to the end of there fixed rate period many borrowers will be looking to find a new competitive rate. Many 100% mortgages lenders are pulling out of the market Alliance & Leicester have announced a temporary withdrawal of there 100% mortgages and 100% plus mortgages products.

Many first time buyer mortgages in the last couple of years have been arranged on a 100% mortgage basis. This means there will be many borrowers who will be looking for a 100% remortgage. Northern Rock had successfully arranged many of these 100% mortgages with there Together 100% morgtage deal.

This meant that someone with debts could buy a house with a 95% mortgage and consolidate their loans with an unsecured loan of up to £30′0000. Many of these fixed rates will be coming to end this year. Northern Rock is not actively seeking to hold onto these mortgages due to problems it has been facing since the credit crunch. 

This means that these mortgages will revert to the lenders standard variable rate (SVR). There are still some lenders out there that are still offering a better deal than the SVR Northern Rock is currently offering at 7.79%.

If you take someone with a £100′000 interest only mortgage that has been on a 6.29% fixed rate for the last two years they will be currently paying £524 pounds per month. When that fixed rate ends their mortgage will revert to the lenders SVR of 7.79% the monthly payment will increase to £649 per month. If they speak to a broker and arrange a 100% remortgage they can get fixed rate at 6.99% for 3 years or 6.89% for a 5 years both are fixed. This will mean a payment of £585 or £574 for the 5 year deal reducing the increase by £75 a month on the 5 year deal.

The difficulty these borrowers will face since the tightening of credit will be subject to how good their credit rating will now be after maintaining a mortgage for the past few years. If they have paid all their monthly lending commitments on time and kept their heads above water switching to a 100% remortgage could be the best option if available to them

Council of mortgage lenders has called upon the Government to raise to raise the 125′000 pounds stamp duty threshold. People requiring a first time buyer mortgage and 100% mortgages are slowly returning to the market as prices ease.

The next budget would be the perfect opportunity to raise the threshold. This would be welcome news for first time buyers and anyone prepared to take out a 100% mortgage where there is still strong demand to get onto the property ladder.

Michael Coogan, director general at the CML said the Government’s aim to increase home ownership for first-time buyers had failed. He said: “First-time buyers are still relying on the ‘Bank of Mum and Dad’. Mortgage payments will start to reduce (in line with expected interest rate cuts), but the main issue for first-time buyers is cobbling together the deposit. Since the credit crunch, 100% mortgages are much fewer in the offering.

The decline in lending is due to funding constraints in the money markets, rather than consumer demand. Current income multiples are between 4 to 4.5 for 100% mortgages and slightly less for first time buyer mortgages dependent upon the deposit being put down.