Shared ownership mortgages can offer a cheaper option.
Shared ownership mortgages sometimes offer an option to first-time buyers who cannot afford to buy a home on their own. The mortgages allow buyers to purchase a share of between 25% and 75% of a property's value.
If you are struggling to buy your first home, call Deal Direct for advice on the various options available. There are many initiatives that are aimed at helping first-time buyers and buyers with small percentage deposits.
Recently published survey figures suggest that over 80% of first-time buyers know about shared ownership and feel that they understand it. To qualify for shared ownership mortgages you need to have an annual income of no more than £60,000.
Surveys suggest that less potential buyers understand the difference between shared ownership mortgages and shared equity. Only 64% of first time buyers surveyed thought they understood what was involved in shared equity.
Shared equity is limited to selected new build properties, but allows first-time buyers to take a mortgage with little deposit. A small deposit and mortgage is needed for a share of the property and a shared equity loan funds the rest.
Statistics show around 25% of buyers who are considering shared ownership mortgages or shared equity schemes thought it was their only option. Without this type of scheme many said they would not have a chance to buy their first home.
If you are interested in these schemes or other options for first time buyers call us at Deal Direct.
We can help you find a mortgage.
