Shared Ownership Mortgages
mortgage advice, Housing Association, affordable housing
The shared ownership scheme was introduced by the government and is a way to part buy part rent a property. It was primarily designed for first time buyers and people who could not afford to buy a home outright, however, in recent time’s people from all backgrounds including key workers, such as nurses and teachers are taking up shared ownership.
You can buy a share of a property between a quarter and three-quarters and pay rent at a reduced rate on the share you don’t own. If your income goes up you can buy more shares of your home which is known as ‘stair casing’, until you own it all. The larger the share you own the less rent you will pay, the cost of increasing your share will depend on the value of the property at the time. Shared ownership homes can include new build properties or traditional homes and you will need to take out a mortgage to pay for your share.
Shared ownership mortgages require a 5% deposit although increasing your deposit will give you a greater choice of mortgage lenders and lower interest rates. As with buying any property it is important you carry out your research ensuring your finances are in place, you are indeed eligible for a shared ownership mortgage and your documentation including payslips, bank statements and passport are present.
Shared ownership lies within a niche mortgage sector which makes it worthwhile speaking to an experienced mortgage adviser who can guide you through the shared ownership process, from buying your first share to total ownership.
, Housing Association
, mortgage advice
, shared ownership