Shared Ownership Mortgages in Bedfordshire, Hertfordshire, Buckinghamshire and the entire UK
Shared Ownership Mortgages
Shared ownership is a government-backed scheme that allows you to buy a share of a property, typically between 10% and 75%. You then pay rent on the remaining share to a housing association. This can be a more affordable way to get on the property ladder, as you need a smaller deposit and your monthly payments will be lower than if you bought a property outright.
To be eligible for shared ownership, you must meet certain criteria, such as having a household income of less than £80,000 (or £90,000 if you live in London). You must also be a first-time buyer or have owned a home in the past but can no longer afford one.
There are two types of shared ownership mortgages: fixed-rate and variable-rate. Fixed-rate mortgages have an interest rate that stays the same for a set period of time, while variable-rate mortgages have an interest rate that can go up or down.
Shared ownership can be a good option for people who want to get on the property ladder but don’t have a large deposit. It can also be a good option for people who want to be able to rent out their property in the future.
To be eligible for shared ownership, you must meet certain criteria, such as having a household income of less than £80,000 (or £90,000 if you live in London). You must also be a first-time buyer or have owned a home in the past but can no longer afford one.
There are two types of shared ownership mortgages: fixed-rate and variable-rate. Fixed-rate mortgages have an interest rate that stays the same for a set period of time, while variable-rate mortgages have an interest rate that can go up or down.
Shared ownership can be a good option for people who want to get on the property ladder but don’t have a large deposit. It can also be a good option for people who want to be able to rent out their property in the future.
Here are some of the pros and cons of shared ownership
Pros
- You can get on the property ladder with a smaller deposit.
- Your monthly payments will be lower than if you bought a property outright.
- It's a government-backed scheme, so it's more secure than other types of property ownership.
Cons:
- You'll still have to pay rent to a housing association.
- You may have to pay higher mortgage rates than if you bought a property outright.
- There are limited lenders who offer shared ownership mortgages.
- You may be limited in the type of property you can buy.
- You can’t rent out the property under the scheme.
If you’re considering shared ownership, it’s important to speak to a mortgage advisor to get more information and to see if it’s the right option for you.
Here are some additional things to keep in mind about shared ownership:
- You can staircase, which means increasing the share of the property you own. This can be done when you remortgage.
- You can sell your shared ownership property, but you may have to give your housing association first refusal.
- Shared ownership properties are often leasehold, which means you'll have to pay ground rent and service charges.
Shared ownership can be a good option for people who want to get on the property ladder, but it’s important to weigh up the pros and cons before making a decision.