Expert Guidance Every Step of the Way
Your property may be repossessed if you do not keep up repayments on your mortgage.
Lenders and Properties Available for Shared Ownership
Shared ownership mortgages are available from more than 10 lenders, including some high street banks and specialist lenders that work exclusively through brokers. This provides a good range of options for those exploring this type of property ownership.
Many new build developments now include shared ownership options, as government regulations require at least 10% of larger developments to offer this scheme or other social housing alternatives. Prospective buyers can find these properties through local councils or platforms like Rightmove.
FAQ'S
How does a shared ownership mortgage work?
Shared ownership is where you purchase a percentage of a property. Say, for example, a property is worth £100,000 and you may be buying on your own, or have a lower income. You might find it a challenge to borrow that amount.
Shared ownership gives you the option to buy a share of that property – perhaps 25%, and then you would rent the other 75% from a housing association. Generally the minimum initial share is 25%.
Who is eligible for a shared ownership mortgage?
Anybody is eligible for a shared ownership mortgage as long as they don’t own any other properties. You don’t have to be a First Time Buyer – you can be a next time buyer, but you can’t keep your existing property.
Deposits, Leasehold Agreements, and Stair casing
The deposit for a shared ownership mortgage is typically 5% of the share being purchased, making it more accessible for first-time buyers. These properties are always leasehold, meaning they are owned by housing associations, and buyers purchase a percentage while paying rent on the remaining share.
Over time, buyers can increase their share through a process called staircasing. However, some housing associations may limit the maximum share to 80%, so it’s crucial to check individual agreements if full ownership is the goal.
Vulnerable Customer
We understand that from time to time our clients may find themselves dealing with circumstances which could mean they are potentially vulnerable. For example, a change in health, caring for a family member or coping with the loss of a loved one. There are many different types of vulnerability, and what makes one person vulnerable might not affect someone else. When we are vulnerable, our need for financial advice may change. However, admitting vulnerability or seeking help can sometimes feel hard.
If this is something you would like to discuss with us, please ask for a copy of our support guide or download a copy here. This guide is designed to help explain vulnerability and the ways in which we might be able to support you. If you feel any of the circumstances in the brochure apply to you, please talk to us.
