You can buy a home through the shared ownership scheme if you cannot afford all of the deposit and mortgage payments for a home that meets your needs.
You buy a share of the property and pay rent to a landlord on the rest.
The share you can buy is usually between 25% and 75%.
You can take out a mortgage to buy your share or pay for it with savings. You’ll also need to pay a deposit, usually between 5% and 10% of the share you’re buying.
You can buy more shares in your home in the future. This is known as ‘staircasing’. If you buy more shares, you’ll pay less rent. The amount of rent you pay will be based on the landlord’s share.
The main benefit of getting a shared ownership mortgage is that you get a foothold on the housing ladder and benefit from the increase to the value of your ‘share’.
Homes you can buy through shared ownership
-a new-build home
-an existing home through a shared ownership resale scheme
-a home that meets your specific needs, if you have a long-term disability – for example, a ground floor flat
-Shared ownership homes are offered by housing associations, local councils, and other organisations. They are called ‘providers’ or the landlord.
All shared ownership homes (houses and flats) are leasehold properties.
Shared-ownership is a niche mortgage sector and not all mortgage lenders are willing to lend on these developments however by contacting us we can help in getting the right mortgage for your situation.
Your home may be repossessed if you do not keep up repayments on your mortgage.