Re-Mortgaging Your Shared Ownership Property

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1 Re-Mortgaging Your Shared Ownership Property Introduction If your mortgage rate is coming to an end you will need to contact your mortgage adviser/lender to arrange a new deal. We suggest that you allow at least three months for this process as the mortgage lender will require Moat to issue them with the mortgagee protection clause. (The mortgagee protection clause is Moat s guarantee to the lender that should anything happen, the mortgage lender will receive their monies as a first priority). Set out here is a step by step process to re-mortgaging your shared ownership property. Important Information To Remember We will not consent to any mortgage which has a mortgage current account / reserve account attached to the mortgage. We do not allow interest only mortgages. We will only consent to the amount currently outstanding on your mortgage, anything above this is considered to be a further advance.

2 Re-mortgaging with existing lender Stage one Contact your mortgage advisor/lender and discuss current rates and which one suits your needs, taking into account the important information provided above. After a rate has been agreed please send a copy of the mortgage offer to us for our records. Re-mortgaging with new lender Stage one Contact your mortgage adviser or approach a lender directly to discuss current rates and which mortgage would suit you best. Once you have decided upon the best mortgage for you we will require the following documents to assess your request and issue the mortgagee protection clause to the new lender. Copy of proposed mortgage offer Redemption statement from current mortgage lender Fee of 50 + VAT ( 60). Stage three Once all the above requirements have been received and the mortgage amount, including any fees which are to be added does not exceed your share of the property based on the current market value, we will send

3 written confirmation to the proposed lender agreeing to the mortgagee protection clause to cover the new mortgage amount. Re-mortgaging with additional borrowing (further advance) We will only consent to the mortgagee protection clause for essential repairs (not covered by the buildings insurance) and purchasing a partners interest in the property after a relationship break down, providing it does not exceed the share owned by the resident. Important Information To Remember We will NOT grant the mortgagee protection clause to the proposed new lender if the additional monies are required for the purpose of debt consolidation. We will NOT grant the mortgagee protection clause for any second charge secured borrowing against a shared ownership property. It is the lenders discretion if they wish to lend without the consent of us, however the money borrowed would have to sit under us in priority Definition of a further advance: Any funds secured over and above the current capital liability of the first charge mortgage. Total borrowings must not exceed a loan to value ratio equal to the resident percentage owed. Example Original valuation at purchase 150,000 (75% = 112,500) Current valuation 177,000(75% = 132,750) Total borrowings not to exceed 132,750 Please note each owner s original share in the property will vary. If your further advance is for essential repairs please see process below.

4 Stage one You will need to write to the Home Ownership Officer advising that you need to carry out essential repairs to your home and provide copies of estimates/quotations. Please note all estimates/quotations must correspond to the additional money requested, so all estimates/quotations must amount, for example, to 10,000 if additional borrowing of 10,000 has been requested. Your Home Ownership Officer will write to you confirming receipt of the above documents and request that the following items be sent to us to be able to assess the request for the mortgagee protection clause to be issued to the lender: Copy of proposed mortgage offer Redemption statement from current mortgage lender Fee of 50 + VAT ( 60) payable by debit/credit card, cheque or postal order made payable to Hafod Housing Association (the fee covers the cost of approving the new mortgage and issuing of the mortgagee protection clause and receiving the new mortgage notice). Stage three Once all the above requirements have been received and we have confirmed that the mortgage amount does not exceed your share in the property based on the current market value, We will write to the lender confirming our agreement to provide the mortgagee protection clause, thus enabling the re-mortgage to proceed. Stage four Once your new mortgage is in place, you will need to contact the Home Ownership Officer again if the essential repairs to your home are structural and require building or planning permission, as further details will be required to enable a Licence for Alteration to be drawn up by our solicitors. You do not have consent to proceed with structural works until this is in place

5 If your further advance is for the purpose of purchasing your partner s interest in the property, please contact the Home Ownership Officer for more details on this. Your home is at risk if you do not keep up mortgage repayments or payments on other loans secured on it. Please note that the value of properties can go down as well as up.