Shared ownership mortgages – what you need to know.
For those individuals who can’t afford to buy a property outright, a shared ownership mortgage is a good way to go. Under the shared ownership scheme, you buy a share and then you rent the rest.
What you need to know:
- Shared ownership property is sold via UK housing associations.
- You are required to buy a share of the house from between 25% and 75%.
- You are required to put down a deposit (5%) and have a mortgage on the share you buy.
- You pay rent on the share that’s still owned by the housing association.
- You own the lease on the property for a fixed period of time, usually 99 years.
If you want to buy a shared ownership property, you should contact your local help-to-buy agent.
Generally, 5% is the minimum deposit required, but as with all mortgages the larger the deposit the better the rate you will be offered.
It’s important to note that not all UK lenders offer shared ownership mortgage deals, therefore you are advised to seek independent advice and help in your mortgage search.
At Deal Direct we have experience sourcing shared ownership deals, and know how to get the best mortgage that’s most suited to your personal circumstances. We are ‘whole of market’ and independent which means you can be sure that our advice is 100% based on your needs. We will only ever recommend a product if it’s right for your financial circumstances.
If you are looking for a home and need shared ownership mortgage advice, speak to one of our impartial Deal Direct advisers today.
For advice and a shared ownership mortgage quote call 0800 048 8828.
