Shared Ownership
Struggling to afford what you want or find a suitable property this might be an option for you.
Shared Ownership
What is shared ownership?
Shared ownership is another government scheme which enables you buy part of a property and pay rent on the other part. And no you don’t have to share your house with someone else.
You can usually buy a share of a new-build or existing home from a housing association, then pay rent on the rest. The mortgage can cover anything between 25% to 75% of the property value, depending on what you can afford.
With most lenders you’ll need a deposit equal to 5-10% of the share you’re buying however some lenders do allow you to buy with a no deposit mortgage.
The example below shows you how it works:
if you want to buy a 25% share of a £300,000 property under shared ownership:
• Your share of the property: £75,000
• Your deposit: £7,500 (10% of the value of your share)
• Housing association share: £225,000
• Mortgage needed: £67,500
To be eligible for a shared ownership mortgage, you have to be a first-time buyer or a former homeowner who can’t afford to buy a new suitable property. Your household income must be less than £80,000 a year (£90,000 in London).
You’ll usually be able to buy a bigger share in the future if you can afford it.
There are some other conditions and full information can be found on the government website here.
Shared Ownership mortgages
Not all lenders offer shared ownership mortgages so it pays to work with a mortgage broker who has access to the whole mortgage market like ourselves to get the right mortgage for your circumstances.
Shared ownership mortgages can be secured with no deposit however as with normal mortgages the more deposit you are able to put down will mean the lower your interest rate should be.
Shared ownership mortgages may also be available if you have Adverse Credit
For more information on the scheme speak to one of our experts.
Buy your home with the shared ownership scheme
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