Shared ownership mortgages
Shared ownership is a government scheme designed to make it possible for low-income households to buy homes. This scheme is also used to help first time home buyers to buy property. With this scheme, you can take up a mortgage for the percentage of the property you own, which is between 25% and 75%. You can pay rent for the remaining percentage.
Who can apply for a shared ownership mortgage?
You can buy a home under the shared ownership scheme if you have a household income of less than £90,000 in London and £80,000 in other parts of England. You also need to be a first-time homebuyer or a previous property owner who is not able to buy in the current market. Also, individuals living in council houses or under the housing association can apply for this mortgage.
You need to be free from any delayed mortgage fees or rent arrears. A good credit history and score are important, and you also need to prove you can afford the cost of the shared home. Military personal are given priority.
If you suffer from long-term disability, you also qualify for the shared ownership mortgage. You will need to apply under HOLD (Home Ownership for people with Long-term Disability).
Applying for shared ownership scheme
The shared ownership scheme is offered under the Help to Buy scheme by the government. A help to buy mortgage broker, like DNA Financial Solutions, can help you find the best lenders for shared ownership mortgages.
Once you decide to buy a shared ownership property, you will need the shared ownership mortgage. You also need to raise 5% in deposit. Ensure you use a broker with experience in shared ownership mortgages to ensure you get the best deal.
Your percentage share of the home is the security for your mortgage. You can lose this percentage if you are not consistent with your loan payments.
We have a handful of lenders that offer extremely competitive rates when it comes to shared ownership so please get in touch to find out more.