Shared Ownership Mortgage in North Devon
Shared ownership is a government scheme to help people to get onto the property ladder who otherwise would struggle due to lower income and savings. The borrower buys between 25% and 75% of a property from their housing association. Therefore, the mortgage and deposit are smaller.
You would then part own and part rent the property, resulting in lower mortgage repayments each month. The part that is now not owned by you is rented on which you have monthly a rental payment. In time you can purchase further parts of the property increasing your percentage ownership and reducing your rental payments. This is called ‘staircasing’.
The main difference between a Shared Ownership Mortgage and a standard mortgage is that Shared Ownership Mortgages are only available through selected lenders, so your options will be more limited. You should also check with the housing association or other authorised body who you share the ownership with, to understand their rules to see if you are eligible.
The main difference with a Shared Ownership Mortgage is the deposit is only for the part you are buying, for example, with a £200,000 property where you are buying a 50% part, a 5% deposit would only be £5,000.
To qualify for a shared ownership mortgage, you will be tested on:
- maximum incomes
- you should be a first-time buyer or previous homeowner who cannot afford to buy now
- you are renting from a housing association or the council
- have a long-term disability
As with any mortgage, the most suitable one for you will depend entirely on your individual circumstances. At Aspire Financial Services, we can help you find the right Shared Ownership Mortgage from those available to suit your needs. The first consultation is free and comes with no obligation – contact one of our team today.
Book a free 30-minute introductory call.