Shared Ownership Mortgages
For First Time Buyers & Previous Home Owners
We compare whole of market mortgage solutions to find the best Shared Ownership Mortgage for your personal circumstances
The Shared Ownership scheme for anyone who doesn’t currently own a home (so you may have previously owned one!) and earns less than £80,000.00 (£90,000 inside London) and have the savings to cover the 10% deposit of the share quantity they’re planning to purchase.
Not all lenders are willing to offer a mortgage being taken out on a shared property, but with help from a trusted broker finding the best lender for you shouldn’t prove difficult.
At Amber Mortgage Solutions we have a highly skilled, highly qualified team of mortgage brokers, who can make your mortgage application a breeze. Getting a home needn’t be a headache! If you’re looking for a mortgage or simply some advice, we are here to help. Contact us today on 01702 619221.
If your looking for a Shared Ownership Mortgage but think you may have a bad credit history click here to find out more.
How We Work
- To start with please either call us or complete the above application form.
- One of our mortgage consultants will be in touch with you to discuss your application.
- After we have your details, we will search the market for the best schemes to suit you.
- We will then talk you through the details of your mortgage.
- 100% Secure, Confidential and hassle free.
Shared Ownership Mortgages Explained
So what is shared ownership? The shared ownership scheme allows people to buy a share in their home even if they cannot afford a mortgage on the entire value of the property.
The buyer purchases a share of the property – usually 25%, 50% or 75% – and the remaining balance is owned by a government-backed housing association or private investor. More often than not, the homeowner will then pay rent on this balance.
Ifyour circumstances change and you can now afford more, then you can increase your share in the property. For example, if you start out with a 25% share then you can increase this to 50%, 75% or with some schemes, this can be increased to 100%, giving you full ownership. As your share in the property increases, the rent you pay to the housing association will decrease accordingly.
People seeking a shared ownership mortgage also need to be aware that only properties offered by participating government-backed housing associations, typically new builds, can be purchased under the scheme.
Who Can Apply For a Shared Ownership Mortgage?
Those who can apply for a mortgage under the shared ownership scheme include:
- First-time buyers
- People who have an existing mortgage under the shared ownership scheme and wish to move property
- People who have previously been homeowners, but do not own a property now and cannot currently afford to buy one
- People who earn less than £80,000 per annum (£90,000 for those living in London)
Whilst the criteria for shared ownership is considered very flexible in terms of lending high loan to values, it is still important that you are able to demonstrate that you can afford your mortgage and rental payments, as well as put down the required deposit.
What are the advantages of Shared Ownership Mortgages?
The main advantage is the opportunity to get your foot on the property ladder for a reduced sum of money
It allows potential home buyers to purchase a smaller share in a property (i.e. 25%, 50%, 75%) rather than the 100% equity purchase usually required.
It also offers the opportunity to increase your equity share over time, giving you the chance to potentially fully own your home in the future.
There are a couple of factors to consider when entering a shared ownership mortgage. It is usually a good idea to initially purchase as much equity as you can, but you must bear in mind that you will pay rent on the percentage of the property you do not own. You should also remember that if you wish to increase your equity share in the future you will have to pay to have the home valued again, so if the value of the property has increased you will have to pay more than you did initially for the additional equity share.
Also, remember, you do not own the entire property through a shared ownership scheme. So one potential issue is that you may find it hard to rent out your property in the event of you wanting to move to a new property. Which means that if you are not capable of increasing your share to 100% you may be limiting your options to move home in the future.
Are you concerned about Bad Credit impacting your application for a shared ownership mortgage?
How To Get A Shared Ownership Mortgages With Bad Credit
When the government recognised the increasing difficulties for borrowers struggling to get a foot on the property ladder, they introduced the shared ownership scheme designed to give potential home owners a much-needed helping hand.
If you’re on the lookout for a property of your own but are concerned that limited funds and a bad credit rating could stand in your way, speak to Amber Mortgage Solutions today. Our team of experienced bad credit brokers can help to find a shared ownership mortgage that’s right for you.
What credit issues are acceptable for mortgages:
Mortgages can be arranged for people with poor credit in the following situations: