Remortgage Shared Ownership Mortgages Explained

Shared Ownership Mortgage schemes are used for part buy, part rent schemes commonly known as shared ownership.

These type of mortgage scheme are popular with first-time buyers because they only need to find a fraction of the deposit ( 100% mortgages are available) and mortgage amount needed to buy a similar property on the open market.

When you buy a shared ownership property, you only buy a percentage stake in the property, usually 25 to 50 per cent – from a housing association. Although this can be affordable, as you only own a percentage of the property you will miss out on some of the equity growth if the housing market rises.

You can, however, staircase‘ which means buying another portion of the property later on.

Many of these shared ownership schemes, which often offer properties at a discount, are open to all comers through housing associations. Shared ownership mortgage schemes vary form lender to lender with some lending up to 100% loan to value on the purchased share.

If you would like to own your own home, but cannot afford to buy on the open market, shared ownership could be for you. You will have sole occupancy rights - you do not have to share your home with anyone else.

Shared ownership allows you to buy a share of a property (usually 50 per cent) from a housing association and pay rent for the remainder. Your monthly outgoings will include repayments on any mortgage you take out, plus rent on the part of the property retained by the housing association.

Later, when you can afford it, you can increase your share until you own the whole property. The purchase of further shares is based on the current market value of the property, whether it has gone up or down.

shared ownership schemes

If you have not found a shared ownership home to purchase or wish to find out more information on shared ownership schemes visit the the housing corporation website to learn more about the Government's HomeBuy scheme. The Housing Corporation is the government agency that funds new affordable housing and regulates housing associations in England.

Shared Ownership Self Cert Mortgages

Should you be unable to prove some or all of your income a Self Certified Mortgage may be right for you. There are a few shared ownership mortgage lenders who offer self cert mortgages on shared ownership purchases, even on 100% of the purchase price of the share. For details on shared ownership self cert mortgages please complete our mortgage enquiry form for professional independent shared ownership mortgage advice.

The overall cost for comparison is 6.7% APR. The actual rate available will depend upon your circumstances. Please ask for a personalised mortgage illustration. Rate correct as of 15/9/2006

Shared Ownership Mortgage Lenders

There are several shared ownership mortgage lenders who will lend 100% of the share that you are purchasing, not all the shared ownership mortgage lenders will, for 100% shared ownership advice please complete our form.