Shared equity schemes seem to be the perfect way for developers and the goverment to get the hosing market moving again.

Struglling developers all over the country have mothballed developments, with millions of pounds of working capital tied up in empty properties. The government recently announced the purchase of 379 homes from Bovis for £18M. This works out at £47,500 per home a good deal for Communities and Local Government.

Bovis said its sales figures are ‘in line with expectations’. The house builder completed 1,817 homes during 2008, down 38 per cent from the 2007 total of 2,930. Private completions were down 47 per cent to 1,223.Social housing made up 33 per cent of sales, up from 22 per cent in 2007, and Bovis agreed ‘a number of deals’ with the Homes and Communities Agency to sell unsold stock to housing associations.

If more builders took the same initiative to off load housing stock at a discounted price that still made them a profit and strengthened their balance sheets maybe more Shared Ownership & Shared Equity properties would be available sooner rather then later.  If you want to know more about shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

With all the doom and gloom over housing market, you might be surprised to know that this is a fantastic time to buy a house via a Shared Ownership & Shared Equity scheme. Even if you have bad credit. You can get a great mortgage deal with the following lenders……Let’s look at a few high street lenders and an adverse (bad credit) lender that have shared ownership mortgage and shared equity mortgage deals available in today’s market.

Abbey are very selective in which developers they have on there approved panel. There rates and fees are similar to the two below, but if your developer is not on the panel then you have no option but to try another lender.

Nationwide accept every developer. They also allow brokers to reserve the rates immediately. Now that may not sound like a big deal but in todays fast pace ever changing mortgage market that is crucial. There tracker rates for shared ownership and shared equity mortgages are competitive, if you are prepared to take a risk on an ever fluctuating Bank of England base rate.  Halifax this is the lender that likes to say yes, they have some of the most competitive mortgage products available. Each application is assessed on an individual basis, this formed around property type and location, employment and ongoing commitments and credit history.

You still need to put a minimum 10% deposit down dependent on credit score for shared ownership purchases. For shared equity mortgages you can secure a 100% mortgage for your share.

100% Bad credit mortgage lender but ONLY for Shared Ownership purchases. Yes there is still one out there but no widely know to the public. They assess each and every case based on its individual merits. It’s based around affordability and your ability to pay the mortgage. The main criteria is base upon your ability to maintain the loan, if your gross income is over £25,ooo 50% of your net monthly income is calculated towards your monthly mortgage payment and rental commitment reducing to 45% for income that are less than £25,000. This shared ownership mortgage product is a LIBOR rated tracker product. Currently you must not have any more than three de-merits (County Court Judgments, Defaults, and Late payments).

If you want to know more about shared ownership & shared equity mortgage schemes, then contact Click n go Mortgages here.

We used to live in a society of tomorrow doesn’t matter, High Loan to value (LTV) loans, self cert mortgages and a focus on high growth and high risk sub prime lending which meant that some lenders lost sight of the risks they were taking. The market is seeing much of this lending now unravel.

The mortgage market is now totally different to 6 months ago; it is now wholly dominated by six large, balance sheet lenders. With the recent pass through of the Northern Rock Granite structure, we are unlikely to see any early, restoration of securitisation markets.

For the time being it was not the place for the FSA to answer questions about whether self-cert mortgages or high LTV loans should be monitored more cautiously. There is a market with the Council of Mortgage Lenders that is willing to take an open mind and collaborate with, learning from the past, and making sure that we get a more sustainable market in the future.

When lenders have adequate liquidity, funding and capital; strong systems, borrowers can enjoy the benefits of a vibrant market but are not exposed to unnecessary risk. The end result of this credit crunch will be a more sustainable, more realistic market and homes that everyone can afford to buy and stay in.

If you want to speak to a mortgage advisor about your options with self cert mortgages, then contact Click n Go Mortgages and talk to an expert about your options.

Following the recent down turn in the market, we will be looking at a more sensible and stable housing market.

The credit crunch has called for officials to analyse the mistakes that have been made and we are being told that the days of mortgages valued at five times a salary are over, as are inflated house prices.

Although the credit crunch caught many off guard – many who have been living on the credit – the credit crunch will now correct the problems caused by lending to those who cannot afford repayments.

The credit crunch, will leave in its wake, many repossession and the end of property ownership dreams as well as negative equity, but hopefully this will be the last time that we such an economic decline.

The problem, that many are now facing up to, is the fact that borrowing more than you could actually afford was only going to land you in hot water.

Fault has rightly be placed with the banks and The Bank of England is calling for tighter controls on the way that money is lent.We were living in a credit bubble that has now burst.Property shows that glorify and ‘fuel the greed’ for easy money have also been blamed and it is worth noting that although people have made money through property development, these people are few.

The days of being obsessed with the value of your home is over and a time when we bought a house because we fell in love with it is just around the corner.   We are going to go back to saving and buying a property because it suits the needs of our family and it is where you want to live.

The Government is now tackling this by pushing shared ownership and affordable housing.  This type of social housing is giving people the chance to get onto the property ladder without getting further into debt and having a realistic idea of what they can actually afford.If you want to speak to an expert about your mortgage or a shared ownership mortgage, then contact Click n go Mortgages on 0845 0945 474 or email us here.

September has seen a record 8% fall in annual house price figures in England and Wales.

The 8% figure is almost double that of August, giving more fuel to the fire that an estimated 1.2 billion people will be living in homes worth less than their mortgage.

The fall last month is biggest annual drop after August’s 4.6% drop, which was a record on its own.

This is the 13th month that the annual rate of house price growth has declined and more evidence of the pending recession.Wales has seen a huge slide of 10.7%, making it the only region to have a double digit dive.  This is quickly followed by the East Midlands and South West, with 9.9% and 9.7% falls.

The South West, South East, North East and East Midlands have seen drops of 2% with Yorkshire and the Humber recording drops of 1.2% in September.

London, typically, is still just about holding onto its house prices and has had the smallest year on year comparable decline of 6.1%, followed swiftly by the North West with a mere 6.3%.

The story goes that we are going to be looking at a 50% overall drop in house prices, over the forthcoming months, so with this in mind should we all be buying in London?  Let us know what you think of this story.  If you have any questions about your mortgage, or how you can get onto the property ladder in these ‘dark days’, then get in touch with Click n go Mortgages.