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Shared Ownership Mortgages Free Help and Advice
Shared Ownership Mortgages make getting that foot on the first rung of the property ladder more affordable because mortgagees purchase only part of their property, renting the rest from the housing association or local authority owning the property.
As a result of purchasing, say, just a 50% stake in their property and renting the rest, first time buyers greatly reduce the deposit required, although the total outgoings including the mortgage and rental elements are likely to be about the same as a standard mortgage. |
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Why Shared Ownership Mortgages?
Shared Ownership Mortgages are part of Government strategy to increase home ownership. With such schemes, mortgagees rent part of their property and have a mortgage on the remainder. Because a lower deposit is required than with a standard mortgage, Shared Ownership Mortgages bring home ownership within the reach of the lower paid, although the total outgoings taking into account the rental and mortgage elements are likely to roughly equate to the mortgage repayments required on a standard mortgage. Later in the life of the mortgage borrowers can purchase a larger percentage of their property at prevailing market rates.
Shared Ownership Mortgages Advice
The best advice for anyone seeking a Shared Ownership Mortgage is to seek help from a professional mortgage broker or advisor. They will have experience in dealing with such mortgage products and be able to guide you towards specialist lenders who offer more flexible products than the standard mortgage.
Would a Shared Ownership Mortgage be Ideal for You?
If someone is currently renting their property from a housing association and are unable to save a sufficient deposit for a standard mortgage, then a Shared Ownership Mortgage might be the ideal mortgage scheme. Depending on the circumstances of the borrower, 100% Shared Ownership Mortgages are available from certain lenders.
In Summary
In summary, Shared Ownership Mortgages allow the less well off to purchase their property from their local authority or housing association, enabling them to attain that all important initial rung on the property ladder. Later in the life of the mortgage a greater percentage of the property can be purchased, although it should be borne in mind that such a purchase will be at prevailing market rates.
