How To Get A Shared Ownership Mortgage

With the cost of buying property going up more and more people are opting for shared ownership mortgage schemes.

Shared equity ownership schemes vary, but in general what they tend to have in common is that they provide buyers with a loan to cover some of the value of the property, in the form of equity or a mortgage guarantee.

In practice, this means that the buyer can get on the housing ladder with a lower deposit than would normally be accepted by mortgage lenders, because the Government is shouldering some of the risk.

How do shared ownership mortgage schemes work?

As an example a housing association is offering new build houses for £300,000. If you got a mortgage to buy 80% your share of teh property would be worth £240,000. You would then pay rent on the remaining 20% (£60,000) to the housing association.

Who qualifies for shared ownership mortgage schemes?

• Income - You will be eligible if your household income is £80,000 or less. If you live in London the household limit is £90,000.
• First time buyer - You need to be a first time buyer or
• A previous homeowner - Who can no longer afford to buy now
• Tenants - Renting from a council or housing association
• Long term disability - if you have a long term disability you may qualify under the Government's Home Ownership For People With Long Term Disabilities (HOLD)

Which Lenders offer shared ownership mortgages?

Not all lenders offer shared ownership mortgages.

See our table above for lenders that offer mortgages on a shared ownership or help to buy basis.

Why do people Choose a shared ownership mortgage?

The main reason is to keep monthly costs to a minimum. 

1. Low deposit

Mortgages are available with as little as 5% deposit.

2. Affordability

A shared ownership mortgage is an affordable way to get on the housung ladderBy remortgaging you may be able to release equity in your home.

Family Mortgage

No Big Deposit? No Big Deal!

• If you are a first time buyer who could afford the monthly repayments, but are struggling to save for a deposit.
• If you are a parent who owns their property outright and is keen to help your children get on the ladder sooner, but don't have a large cash sum available.

To Qualify:

• Your assistor must be a close relative (parents and step-parents, brothers and sisters and step-brothers and step-sisters).
• You must be a first time buyer in order to apply (for joint applications, this applies to both buyers).
• You will be assessed on your ability to meet the repayments for both mortgages. Your minimum assessable income needs to be at least £20,000.

Click here for more information about the "Family Link Mortgage For Shared Ownership" - Click here »